Good Faith Claim Handling

The course “Good Faith Claim Handling” is designed to enhance an adjuster’s knowledge, understanding, and professional competence in the good faith handling of first-party and third-party claims. The module is presented by Lindsey Davis, Partner at Zelle Hoffman Voelbel & Mason LLP and Dan Anderson, Director of Property Claims for Western National Insurance Group.

The presenters begin by providing an general overview of what constitutes good faith claim handling. Next, the presenters describe the first-party and third-party insurance relationships and identify some typical conduct that can give rise to bad faith allegations in those contexts. The presenters then explain the four most common damages potentially available in bad faith actions, depending on the jurisdiction. In the next two sections, the presenters outline the three main duties of liability insurers and the standards of conduct imposed by case law or statute on property insurers. The presenters also review the main sources of bad faith law in the first-party context. Section 4 sets forth the evidence often used to prove bad faith conduct and provides several practical considerations for adjusters and claims supervisors on how to avoid bad faith allegations. Finally, in the last two sections, the presenters review six case studies that apply the information learned during this module and give insurance professionals more practical examples of how to handle claims in good faith.

After completing the course, the viewer should be able to…

describe the parties to the first-party and third-party insurance relationships and how those relationships work; provide examples of conduct that can give rise to allegations of bad faith in the first and third-party context; list the four most common damages potentially available in bad faith actions; identify the three main rights and duties of liability insurance carriers including the duties to defend and indemnify the insured and the duty to reasonably respond to a policy limits settlement demand; explain the two most common tests used by courts to evaluate whether the duty to defend has been triggered; identify the main sources of bad faith law in the first-party context; outline the evidence used to prove bad faith conduct; provide practical considerations for avoiding bad faith allegations in the first and third-party contexts with a focus on communicating with insureds, conducting reasonable investigations and working with vendors.

The course is designed for insurance professionals and vendors working in the areas of liability and property adjustment.