An insurance company can no longer use the affirmative defense of comparative bad faith to escape liability for bad faith claims handling practices. Although this is a third party case, the reasoning has been applied to first party cases as well. See Hale v. Provident Life & Accident Insurance Co. (2003)
Kransco vs. American Empire Surplus Lines Insurance Company
Year
1998
Court
California Supreme Court
Case Number
S062139
Issue
- Bad Faith
State
- California