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In Kentucky, you can't see the forest of bad faith under the Kentucky Unfair Claim Settlement Practices Act unless there is bad-faith conduct exposed to punitive damages, i.e., conduct equivalent to manslaughter in most States.
The Kentucky Supreme Court has just held that a bad faith claim against an insurer is, essentially, based on conduct that draws an assessment of punitive damages:
A bad faith claim under Kentucky law is, essentially, a punitive action. The tort of bad faith is non-existent under our law, unless the underlying conduct is sufficient to warrant punitive damages. Absent evidence of punitive conduct, an insurer is entitled to a directed verdict for any bad-faith claim levied against it. This explains why KUCSPA [Rev. Stat. Ann. § 304.12-230] requires plaintiffs to prove that an insurer’s actions during resolution of the claim were outrageous, or because of the defendant’s reckless indifference to the rights of others.
Hollaway v. Direct Gen. Ins. Co. of Miss., Inc., No. 2014-SC-000758-DG, 2016 WL 5245694, at *5 (September 22, 2016) (STATED "THIS OPINION IS NOT FINAL AND SHALL NOT BE CITED AS AUTHORITY IN ANY COURTS OF THE COMMONWEALTH OF KENTUCKY.").
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