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I hate when insurers are accused of performing in “bad faith.” Most individuals who say that do not know what they’re saying or writing. They are simply upset with the outcomes of an insurer investigation. It is the failure to behave within the utmost of excellent religion and truthful dealing which traditionally topics an insurer to extra-contractual damages. It doesn’t imply that the insurer was “evil” or “bad.” The regulation did a disservice to customers when it known as these actions “bad faith” causes of motion.
However, a current Indiana case appears to point that “evil” intent is required within the first-party context.1 That current Indiana determination said the next:
“Best Inn argues Doyle had no rational, principled basis for denying its claim because the evidence of vandalism to the rooftop air conditioners was ‘obvious.’ Doyle admits he did not take enough photographs, did not record enough details, and generally did a poor job regarding the rooftop air conditioner inspection. Doyle also testified he was ‘having a bad day,’ his inspection was ‘probably’ affected by his eye injury, and that he had made a ‘mistake,’ Doyle’s testimony reflects that he may have acted negligently, but not with dishonest purpose or ill will. No reasonable jury could conclude otherwise.”
Having a “bad day” goes to be the excuse for the failure to behave in good religion as long as the poor reasoning of this case is upheld. Failing to correctly alter a declare and inflicting extra-contractual damages to an Indiana policyholder goes to be met by a authorized excuse of someone “having a bad day.”
The case is filled with poor information resulting in this unlucky authorized reasoning which is able to invite insurers in Indiana to behave poorly and never in good religion—but escape accountability for doing so. Just name it a “bad day at the office,” which resulted in an arbitrary, devastating outcome to the policyholder, and one can escape accountability for the responsibility to behave within the utmost of excellent religion.
This is poor authorized reasoning. Most crooks had a “bad day” when doing one thing felony. If that isn’t a protection for felony conduct, why ought to or not it’s a protection to civil misconduct?
Thought For The Day
I imagine that unarmed fact and unconditional love could have the ultimate phrase in actuality. This is why proper, briefly defeated, is stronger than evil triumphant.
—Martin Luther King, Jr.
1 Ohio Security Ins. Co. v. Best Inn Midwest, No. 1:22-cv-o1223 (S.D. Ind. Mar. 13, 2023).