This article is part 2 of a series begun here on what the Courts hold about "General Business Practice" claims and proof in cases involving alleged statutory violations.
Merely alleging that "upon information or belief ... approximately" four complaints were filed against a defendant insurance company with the Connecticut Insurance Department, and that "approximately seven similar claims" were filed against the defendant with the National Association of Insurance Commissioners,[1]
and further that the defendant had been sued "at least four times" for refusing to settle "similar" claims and that "'Westlaw reports approximately 5 other cases'" involving defendant's type of policy, are not sufficient to allege a statutorily required "general business practice."[2] Allegations of the type which have just been summarized have been held to be "non-conclusory allegation[s] that those instances are factually similar to Plaintiff's situation[.]"[3]
Statutory bases of liability in settlement are discussed in § 3:28 (third-party bad faith claims and cases) and § 9:14 (first-party bad faith claims and cases), in DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH (West Publishing Co., 2024 Supplements in process).
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[1] Thomas, 594 F. Supp. 3d at 512.
[2] Thomas, 594 F. Supp. 3d at 512-13.
[3] Thomas, 594 F. Supp. 3d at 513.
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