A Video Explaining Ethics and the Covenant of Good Faith & Fair Dealing

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On rare occasions, an insured will act unethically in his, her or its relations with an insurer. When they do, if discovered by the insurer or its claims person, the right to indemnity may be lost. As you read about the decision from the United States Supreme Court below consider how the insured acted unethically to the insurer and why the Supreme Court decided to deprive the insured of his right to indemnity.

Although hoary with age this case still states the law of the United States with regard to unethical and fraudulent conduct by an insured and the insured’s obligation to appear for and testify honestly at an examination under oath, Claflin & Others v. Commonwealth Insurance Company.; Same v. Western Assurance Company.; Same v. Franklin Insurance Company, Supreme Court Of The United States 110 U.S. 81; 3 S. Ct. 507; 28 L. Ed. 76; 1884 U.S. LEXIS 1661 Argued and submitted October 16, December 17, 1883. January 14, 1884.