Kransco vs. American Empire Surplus Lines Insurance Company
Year 1998
Court California Supreme Court
Case Number S062139
  • Bad Faith
  • California

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)