In a recent case, a Policyholder-Insured under an Auto Liability Policy sued his Insurance Company for alleged Bad Faith even though he apparently had no issue with the Carrier's settlement of the underlying claim against him: Download Kincaid v. Erie Ins. Co. (Ohio 8th DCA, Opinion Filed August 27, 2009), attached Official Slipsheet Opinion Paragraphs 2-3. Instead, the Insured sued the Liability Insurance Company for its alleged failure to reimburse him "for expenses due under his insurance policy," specifically, under the "Additional Payments" provisions. Download Kincaid v. Erie Ins. Co. (Ohio 8th DCA, Opinion Filed August 27, 2009), Paragraphs 4-5.
The Ohio Appellate Court noted that "a bad faith tort claim" against insurers is available to insureds under Ohio law "because a fiduciary relationship exists in the context of insurance contracts, [so that] the insurer has a duty to act in good faith in handling the claims of the insured." Download Kincaid v. Erie Ins. Co. (Ohio 8th DCA, Opinion Filed August 27, 2009), Paragraph 23. The Appellate Court reversed the Trial Court's Order dismissing the claim or cause of action for alleged Bad Faith and asserted breach of the covenant of Good Faith and Fair Dealing. Download Kincaid v. Erie Ins. Co. (Ohio 8th DCA, Opinion Filed August 27, 2009), Paragraph 25.
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