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Who Killed Reverse Bad Faith? And Why It Could Make A Comeback

January 26, 2012

In every state in the union an insured can seek some form of compensation for an insurer’s ‘‘bad faith’’ in adjusting a claim. Yet only one state, Tennessee, currently allows an insurance company to recover damages caused by the insured’s bad faith. This imbalance has allowed ‘‘bad faith’’ litigation to become big business. The tendency of courts to treat insureds like a disadvantaged class has created an uneven playing field for insurance companies in claims adjustment…

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