Bad Faith Set Up Fails Because of Genuine Dispute Over Coverage

Read the full article at https://www.linkedin.com/pulse/homeowners-policy-provides-coverage-auto-related-zalma-esq-cfe and at https://zalma.com/blog plus more than 3750 posts.

Gregory Woosley, appealed separate summary judgments in Gregory Woosley, As Administrator Of The Estate Of David H. Woosley And Olivia Marie Woosley v. State Auto Property And Casualty Insurance Company, NO. 2020-CA-0958-MR, Commonwealth of Kentucky Court of Appeals (May 28, 2021).

ZALMA OPINION

A liability insurance company is obligated to defend an insured in any case where there is a potential for coverage. However, an insurer has no obligation to defend or indemnify its insured if the policy clearly and unambiguously excludes coverage. To demand money from a homeowners insurer for an auto accident with a threat of a bad faith suit is a waste of time and, in my opinion, wrongful. The plaintiffs attempted to set up State Auto and failed because the court actually read the policy with the facts and applied them logically and appropriately.

© 2021 – Barry Zalma