As if being voted the worst insurance company in America wasn’t enough. That entry is HERE.
A Missouri appellate panel on Tuesday upheld a $16 million bad faith judgment against Allstate Insurance Co. The Missouri Court of Appeals found that, based on the evidence presented in the case, it was reasonable to infer that the insurer had acted in bad faith. The cases stemmed from a 2000 drunken driving accident in which Allstate refused to settle claims on behalf of the victims.
As reported by the Kansas City Star:
Allstate’s failure to recognize the severity of the Johnsons’ injuries and the probability that the claim would far exceed Davis’s policy limits; its failure to investigate the claim and respond to the demand in accordance with insurance industry standards and its own good faith claim handling manual; and its failure to advise Davis of the demand, his likely exposure for an excess judgment, and his right to retain counsel, are all circumstances supporting a reasonable inference that Allstate’s refusal to settle was in bad faith,” Judge Paul Spinden wrote.
You can read more about the case HERE.
There should probably be more of these lawsuits filed.
