NO BAD FAITH WHERE COVERAGE IS EXCLUDED UNDER THE POLICY (Philadelphia Federal)
The insured leased a rental car, and obtained excess insurance through the rental company. He was injured in a motor vehicle accident and sought UIM coverage under the excess policy. The excess carrier asserted UIM coverage was excluded, and denied coverage. The insured brought breach of contract and bad faith claims.
The court granted the excess insurer summary judgment on all counts. The court agreed the excess policy excluded UIM coverage, and there were no exceptions that could force such coverage on the carrier. The court held that because the policy “specifically excluded coverage for underinsured motorist claims … Plaintiff’s claims for breach of contract and bad faith are unfounded.”