MAY 2017 BAD FAITH CASES: NO EVIDENCE OF BAD FAITH WHEN INSURER’S ACTS MEET POLICY TERMS AND CONDITIONS (New Jersey Appellate Division)
In this New Jersey appellate case, after finding for the insurer on coverage, the court found no evidence of bad faith. An insured “’must establish the merits of his or her claim for benefits. If there is a valid question of coverage, i.e., the claim is “fairly debatable,” the insurer bears no liability for bad faith.’” In this case, the insurer denied claims above a specific sum consistent with the policy’s terms and conditions. For this reason, the court concluded that there was “no evidence of bad faith on behalf of defendant.”
