How can an insurance company’s evaluation of its policyholder’s personal injury claim be considered fair, reasonable and in good faith if the insurance company cannot explain how it arrived at the dollar value it assigned to the claim? I don’t believe it can.
This issue often arises in uninsured motorist (“UM”) breach of contract/bad faith
The “legitimate dispute” defense is asserted in many, if not most, bad faith cases. As noted in a previous post, using this defense, insurance companies often argue there is a “legitimate dispute” with the policyholder about the insurance claim in question, and there can therefore be no bad faith liability. Policyholders often argue in response