42 Pa. Cons. Stat. § 8371

Section 8371 provides a bad faith remedy for insureds but does not substantially protect secondary insurers when a primary insurer denies coverage.

General Accident Insurance v. Federal Kemper Insurance · filed 1996-08-21

The purpose of section 8371 was to provide a statutory remedy to an insured when the insurer denied benefits in bad faith. ... We do not find that this statute provides substantial protection to secondary insurers under the circumstances.

Section 8371 permits bad-faith claims by insureds, but not by injured third parties against a tortfeasor’s liability insurer.

Yost v. Travelers Insurance · filed 1999-06-21

Because Pennsylvania law does not permit third parties to sue liability insurers for bad-faith conduct in handling claims against their insureds,1 the Yosts' action was therefore untenable.

Section 8371 does not apply to conduct before an insurance contract is formed.

Altimari v. John Hancock Variable Life Insurance · filed 2003-02-26

Although plaintiff argues that this action arises under an insurance policy because defendants refuse to pay the proceeds of a life insurance policy, 42 Pa. Cons.Stat. § 8371 does not apply to conduct which occurs prior to formation of an insurance contract.

Section 8371 creates a private cause of action for insurer bad faith.

Delka v. Continental Casualty Co. · filed 2008-04-02

On the other hand, the statutory bad faith legislation (Section 8371) specifically creates a cause of action for private persons.

Section 8371 creates a cause of action for first-party insurance bad faith claims.

Goddard v. State Farm Mutual Automobile Insurance · filed 2014-01-16

The Pennsylvania bad faith statute clearly creates a cause of action in the first party context, which Goddard has properly availed himself of here.

Section 8371 permits a bad faith claim only against an insurer, and a complaint that plausibly alleges insurer status can survive judgment on the pleadings.

ABC CAPITAL INVESTMENTS, LLC v. NATIONWIDE RENTSURE · filed 2019-12-17

In sum, while we do not decide the ultimate factual question of whether Rentsure does, in fact, qualify as an insurer under Pennsylvania’s bad faith law, we conclude that the Complaint (considered in conjunction with the other limited documents that we may consider on a Motion for Judgment on the Pleadings) plausibly alleges that it does. We therefore deny Rentsure’s Motion insofar as it seeks judgment in its favor on the bad faith claim in Count III of the Complaint, and we likewise refuse to grant judgment in Nationwide Eviction’s favor on this claim.

An assignee must be both an injured plaintiff and a judgment creditor to have standing to bring a Section 8371 bad faith claim.

WILLIAMS V. STATE FARM · filed 2021-06-29

Because Williams does not allege that he is both an “injured plaintiff” and “judgment creditor”, he lacks standing to bring a bad faith claim against State Farm.

Section 8371 requires an assignee bringing a bad faith claim to be both an injured plaintiff and a judgment creditor; an assignment of insurance proceeds alone does not establish standing.

WILLIAMS V. STATE FARM · filed 2021-09-09

Since Williams does not allege that he is both an injured plaintiff and judgment creditor, he lacks standing to bring a bad faith claim against State Farm.

Section 8371 allows an insured’s assignee to pursue an assigned bad faith claim when the assignee plausibly alleges it was injured by unpaid restoration costs.

Royal Water Damage Restoration, Inc. A/A/O Janet Thorn v. ALLSTATE VEHICLE AND PROPERTY INSURANCE COMPANY · filed 2022-07-28

Here, like in Royal Water v. State Farm, the allegations of the Complaint, taken in the light most favorable to Plaintiff, sufficiently allow for the inference that Plaintiff is both an injured plaintiff and a judgment creditor.

Section 8371 does not permit a statutory bad faith claim against an individual claims adjuster.

HOLOHAN v. MID-CENTURY INSURANCE COMPANY · filed 2021-09-27

Plaintiffs have no plausible claim against Defendant Harman for statutory bad faith because such claims have been found impermissible under § 8371.

Section 8371 allows an insured to assign a bad faith claim to an injured party who is not a judgment creditor.

ROYAL WATER DAMAGE RESTORATION, INC. a/a/o 1133 COLUMBIA LLC v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2022-06-29

State Farm’s interpretation of the Pennsylvania Supreme Court’s holding in Wolfe is inconsistent with the broader reasoning behind it. ... It did not believe the legislature intended to change the practice because, as drafted, Section 8371 does not specifically bar assignments. ... In contrast, Royal Water has sufficiently alleged it holds a valid assignment from 1133 Columbia.

Section 8371 does not support a bad faith claim based on the drafting of an insurance policy.

KIRSCHNER v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2023-10-31

As Plaintiffs have failed to identify any authority allowing a bad faith claim premised on the drafting of the insurance policy, I will strike this allegation.

Section 8371 does not extend first-party bad faith liability to an insurer that promptly pays the insured the full policy limit without a separate basis for bad faith.

Cutting Edge Tree Professionals, LLC v. State Farm Fire Claims Company · filed 2024-10-28

Other Pennsylvania caselaw implicating a broader range of conduct beyond the two-pronged test of Terletsky is inapplicable since the Insured received a payment of the full policy limit. ... With no dispute of material facts, inappropriate reliance on standards of UIPA, and a few inapposite Pennsylvania cases cited in support of the dramatic expansion of first-party bad faith claims, this Court will exercise judicial restraint and refuse to expand the boundaries of current Pennsylvania bad faith law.

Section 8371 requires the insurer to owe the claimant a duty of good faith; someone who is not insured under the relevant policy coverage cannot succeed on a statutory bad faith claim.

Melanie Miller v. USAA General Indemnity Co · filed 2025-01-07

USAA does not have a duty of good faith with respect to Miller, and so her statutory bad faith claim cannot succeed.

A § 8371 bad faith claim requires facts showing that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a basis.

BYRD v. ALLSTATE VEHICLE AND PROPERTY INSURANCE COMPANY · filed 2025-03-04

Plaintiffs therefore do not plausibly allege that Allstate lacked any reasonable basis for its denial, nor do they allege sufficient facts showing that Allstate knowingly or recklessly disregarded the lack of a reasonable bases by denying the claim.

Section 8371 bad faith claims cannot rest on allegations contradicted by the facts in the complaint.

BENGAL CONVERTING SERVICES, INC. v. LANDMARK AMERICAN INSURANCE COMPANY · filed 2025-03-05

First, regarding the allegations stemming from Landmark’s handling of Plaintiff’s claim for property damage coverage, these allegations cannot support a claim for statutory bad faith because they are contradicted by the facts in the Complaint.

Section 8371 requires facts showing that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

MCGUIGAN v. AMERICAN STRATEGIC INSURANCE CORP. · filed 2025-07-15

In Count II of the Amended Complaint, Plaintiffs fail to state a bad faith claim because they have not pled facts showing Defendant lacked a reasonable basis for denying benefits or knew or recklessly disregarded the lack of a reasonable basis.

Section 8371 requires specific allegations of insurer misconduct; a 10-month delay alone does not state a bad faith claim.

Lewis · filed 2025-10-22

Thus, without specific allegations beyond the existence of a 10-month delay, Plaintiff fails to meet the requirements of a bad faith claim.

Section 8371 permits a statutory bad faith claim against an insurer, but not an insurance adjuster.

FUNARO · filed 2025-11-19

Additionally, the Court agrees that the plain language of 42 Pa. Cons. Stat. § 8371 makes clear that only an insurer, not an insurance adjuster, can be held liable under Pennsylvania’s insurance bad faith statute.

Section 8371 creates a tort cause of action for an insurer’s bad faith conduct.

Hill v. Cray Research, Inc. · filed 1991-07-11

With effect from July 1, 1990, 42 Pa.C.S.A. § 8371 grants a cause of action in tort for bad faith conduct on the part of an insurer.

Section 8371 does not require an insurer’s bad faith to occur during a pending action; an insurer’s declaratory judgment action concerning policy benefits qualifies as an action arising under an insurance policy.

Kauffman v. Aetna Casualty & Surety Co. · filed 1992-06-17

Section 8371 provides for an award of punitive damages for bad faith on the part of an insurer in an action arising under an insurance policy; this does not mean, however, that the bad faith itself must have occurred during the pendency of an action. In any event, the argument is unavailing because Aetna’s bad faith conduct is clearly alleged to have occurred during the pendency of Aetna’s declaratory judgment action, which qualifies as an “action arising under an insurance policy.”

An action under the Pennsylvania Slayer’s Act concerning insurance proceeds can qualify as an action arising under an insurance policy for § 8371.

Rottmund v. Continental Assurance Co. · filed 1992-12-14

The Court holds, therefore, that this lawsuit is “an action arising under an insurance policy” within the meaning of 42 Pa.Cons.Stat. Ann. § 8371 (1975 & Supp.1992).

The Pennsylvania Insurance Guaranty Association is not an insurer subject to § 8371.

T & N PLC v. Pennsylvania Insurance Guaranty Ass'n · filed 1992-08-24

These definitions coupled with a careful reading of the Insurance Guaranty Act make clear that PIGA is not an insurer for purposes of 42 Pa.C.S. § 8371.

Section 8371 provides private citizens a bad faith claim against an insurer and permits punitive damages.

Great West Life Assurance Co. v. Levithan · filed 1993-10-22

Defendant’s Counterclaim includes Count IV for Bad Faith under 42 Pa.C.S.A. § 8371, which was enacted to provide private citizens with a cause of action for bad faith conduct by insurers, and Count V for violation of the Unfair Trade Practices and Consumer Protection Law under 73 Pa.S.A. §§ 201-1 et seq., which provides a private cause of action against an insurer for unfair or deceptive acts or practices. ... As for Count IV for Bad Faith under 42 Pa.C.S.A. § 8371, the statute permits recovery for punitive damages.

Section 8371 applies to insurance claims beyond motor vehicle insurance claims.

Boring v. Erie Insurance Group · filed 1994-05-13

After analyzing 42 Pa.C.S. § 8371, its plain unambiguous language, its codification, its legislative history, and the existing body of case law, we hold that application of 42 Pa.C.S. § 8371 is not limited to motor vehicle insurance claims.

Section 8371 applies to insurance policies and does not apply to surety bonds.

Collier Development Co. v. Jeffco Construction Co. · filed 1995-04-13

Therefore, it seems that the legislature, believing these items to be different, intentionally limited the bad faith provision of section 8371 to insurance policies only.

Section 8371 permits bad faith remedies against an insurer, and an insurance agent is not an insurer under the section merely because the agent acts for an insurance company.

Cicero v. Cominsky · filed 1995-07-07

Based upon the foregoing statement of law, as well as on the plaintiffs’ own pleading, there is no question but that the defendant, United States Fidelity and Guaranty Insurance Company, is an insurer under the act. There is equally no question, however, that the defendant, Joseph Cominsky, d/b/a Cominsky Insurance Associates, is not such an insurer.

Section 8371 may create an independent bad faith cause of action, but it does not supersede an exclusive workers’ compensation remedy or permit a concurrent action for handling a workers’ compensation claim.

Patricia Winterberg James Winterberg, Individually and as Husband and Wife v. Transportation Insurance Company T/a Cna I · filed 1995-12-14

Nor does § 8371 permit a separate, concurrent action on the handling of workmen’s compensation claims.

Section 8371 applies to an insured’s action against an insurer under an insurance policy; an injured employee cannot use it to challenge the handling of a workers’ compensation claim.

Fry v. Atlantic States Insurance · filed 1997-08-27

Accordingly, the “good faith” legislation does not apply, and would not even if our conclusion as to Appellant’s major premise were different. As the language of § 8371 makes clear, the statute controls to actions brought against an insurer by an insured under the terms of a policy. ... We would add, moreover, that the section requires the insurer to have acted in bad faith toward the insured, that is, if anybody, the employer not the employee.

Section 8371 does not provide outside redress for a bad faith claim that falls within the Workers’ Compensation Act’s exclusive remedies.

Webb v. Old Republic Insurance · filed 1998-03-05

Based on the foregoing, plaintiff cannot remove her claims from the WCA and seek outside redress for bad faith under 42 Pa.C.S. §8371.

Section 8371 does not override the Workers’ Compensation Act’s exclusivity clause for work-related injury claims.

Daubner v. Firemans' Fund Insurance Co. · filed 1996-06-21

Whereas the intent of the legislature in enacting 1990 Pa. Laws 6 was to provide comprehensive reformation of the Pennsylvania automobile insurance laws, and whereas the exclusivity clause of the Workers’ Compensation Act is a quid pro quo for employers for being subject to no-fault liability for work-related injury, Lewis v. School District of Philadelphia, 517 Pa. 461, 538 A.2d 862 (1988), the court finds that it was not the intent of the legislature that 42 Pa.C.S. §8371 prevail over section 481 of the Workers’ Compensation Act. The court finds that the legislative intent necessary to supercede the exclusivity clause of the Workers’ Compensation Act must be more clearly manifested than a boilerplate repealer section in an Act intended to provide a comprehensive reformation of Pennsylvania automobile insurance law; therefore, defendant’s preliminary objection to plaintiff’s complaint is sustained.

Section 8371 gives an insured an independent cause of action for an insurer’s bad faith in any aspect of dealings under an insurance contract.

Frazier v. State Farm Automobile Insurance · filed 1996-08-14

The plain language of the statute is clear evidence that section 8371 was intended to apply in any situation involving an insurance contract where a court finds that an insurance company has acted in bad faith towards its insured in any aspect of the dealings between the two parties. Thus, section 8371 does provide an insured with an independent cause of action against his insurer for alleged bad faith conduct.

An assignment made without the insurer’s consent can preclude plaintiffs from bringing a § 8371 action.

Seasor v. Liberty Mutual Insurance · filed 1996-08-29

The Court has determined that the assignment without Liberty Mutual’s consent does preclude Plaintiffs from bringing this action pursuant to 42 Pa.C.S.A. § 8371.

Section 8371 does not permit a medical provider to bring a bad faith action against the insurer responsible for an accident victim’s first-party benefits.

Taylor v. Nationwide Insurance · filed 1997-10-06

An interpretation of section 8371 that permits a medical provider to bring a bad faith action against the insured’s insurance company may be inconsistent with the interests of the insured — i.e., the person whom section 8371 is intended to protect. ... On October 6, 1997, it is hereby ordered that defendant’s preliminary objections seeking dismissal of plaintiff’s bad faith claims are sustained and these claims are. dismissed with prejudice.

Section 8371 lets a person entitled to insurance protection pursue a bad faith claim against an insurer for refusing first-party benefits.

Evans v. Erie Insurance · filed 1998-02-25

The purpose of section 8371 is to protect persons who are entitled to insurance protection. ... Consequently, there is no reason why the legislature would not have intended for section 8371 to reach any automobile vehicle victim entitled to first-party benefits under applicable insurance coverage pursuant to the provisions of the Motor Vehicle Financial Responsibility Law.

A complaint can state a cognizable § 8371 claim when its allegations satisfy the statutory bad faith standard.

Abbazio v. Nationwide Insurance · filed 1996-10-24

Applying the foregoing statutory definition to the facts alleged in plaintiff’s complaint makes it apparent that the plaintiff has alleged a claim cognizable to 42 Pa.C.S. §8371.

Section 8371 is not limited to actions based on an insurer’s failure to pay a claim under a policy.

Ihnat v. Pover · filed 1997-12-16

42 Pa.C.S. §8371 is not limited to actions for an insurer’s failure to pay a claim under a policy.

Section 8371 addresses bad faith denial of insurance claims and does not provide a remedy for the alleged improper sale of a policy.

Connors v. Metropolitan Life Insurance · filed 1997-12-26

The courts of this Commonwealth have consistently held that “bad faith” in the insurance context relates to bad faith denial of claims. ... Here, the plaintiff has not presented any direct authority for his expansion of the remedies under the statute, and it appears to the court that this proposed remedy does not exist under the statute. Therefore, we must sustain this preliminary objection of the defendants.

Section 8371 permits bad faith remedies only in actions arising under an insurance policy and does not apply to claims against a surety under a surety bond.

Superior Precast, Inc. v. Safeco Ins. Co. of America · filed 1999-10-04

This analysis leads to the conclusion that the term insurance policy in § 8371 does not include surety contracts, that there is no bad faith cause of action against a surety by the protected party under a surety bond such as Superior, and that Count II of the Amended Complaint must be dismissed as a matter of law.

Section 8371 does not apply to surety bonds because they are not insurance policies.

M. A. Bruder & Sons Inc. v. Williams · filed 2000-06-29

We agree with the well-reasoned analysis of the district court in Superior Precast, supra, and find that section 8371 was not intended to include surety bonds.

Section 8371 permits a bad faith claim when an insurer denies first-party benefits based on a PRO’s unauthorized causation finding.

Olsofsky v. Progressive Insurance · filed 2001-08-23

Similarly, we conclude that section 8371 and section 1797(b) are reconcilable in those instances in which an insurer has denied first-party benefits in reliance upon a “causation” determination by a PRO.

Section 8371 covers bad faith involving the denial of benefits or handling of a claim, but does not cover a failure to renew an insurance policy unless that failure involves such conduct.

Brickman Group Ltd. v. CGU Insurance · filed 2001-08-03

This court previously stated that “a bad faith claim under [42 Pa.C.S.] §8371 does not involve a failure to renew an insurance policy, unless such failure involves the denial of benefits or the handling of a claim, which is a situation not implicated on the present facts.” ... This court disagrees with Brickman’s argument that the allegations in the proposed second amended complaint specifically link CGU’s “bad faith” conduct to the insurance policies, themselves, and state a statutory bad faith claim for anticipatory breach of these policies. Notwithstanding any of Brickman’s allegations, this court again finds that the gravamen of Brickman’s claim rests in CGU’s failure to renew Brickman’s policies at the same terms and rates despite the insurance program guarantee. See id. at ¶¶71-87. This court also finds that Brickman’s proposed amendment does not cure the defects of the first amended complaint.

Section 8371 permits an insured to seek statutory bad faith remedies against an insurer in an action arising under an insurance policy.

Pennsylvania Medical Society Liability Insurance v. Commonwealth, Medical Professional Liability Catastrophe Loss Fund · filed 2002-09-18

Because the CAT Fund is not an insurer and this action is not brought by the insured parties, the Insurance Company has not set forth a claim of bad faith under Section 8371 of the Judicial Code.

A person who is neither the insured nor a qualifying policy beneficiary lacks standing to pursue a § 8371 bad faith claim.

Davin v. Davin · filed 2004-01-30

We agree appellant has no standing to pursue a claim against Principal for bad faith. She is not the insured and while it may be trae a third party beneficiary of an insurance contract has standing under Section 8371, ... Mary Anne Davin cannot be a beneficiary of the policy.

Section 8371 creates a bad faith cause of action that sounds in tort and is subject to a two-year statute of limitations.

Ash v. Continental Insurance · filed 2003-09-15

After reviewing the court decisions that have addressed this issue we conclude that a bad faith action under section 8371 sounds in tort and is subject to a two-year statute of limitations.

Section 8371 makes a finding of insurer bad faith the only prerequisite to awarding punitive damages, while leaving the award discretionary.

Hollock v. Erie Insurance Exchange · filed 2004-01-22

The statute provides no other language suggesting a pre-condition for the award of punitive damages. Thus, by statutory mandate, a finding of bad faith is the only prerequisite to a punitive damages award under section 8371.

Section 8371 applies to insurance policies and does not impose bad faith liability on a self-insured entity that is not an insurer.

Southeastern Pennsylvania Transportation Authority v. Holmes · filed 2003-11-12

We hold, therefore, that SEPTA’s response to a claim for damages by Appellants did not implicate 42 Pa.C.S. § 8371.

Pennsylvania law exempts HMOs such as Keystone from statutory bad faith claims under § 8371.

DiGregorio v. Keystone Health Plan East · filed 2003-12-29

Moreover, Appellants cannot assert a statutory entitlement to punitive damages because Pennsylvania specifically exempts HMOs, such as Keystone, from statutory bad faith claims under 42 Pa.C.S. § 8371.

Section 8371 permits bad faith damages, including punitive damages, only in an action under an insurance policy and does not provide a remedy against PPCIGA or the CAT fund.

Osborne v. Neville · filed 2004-02-27

If a private insurer had handled this malpractice claim in the manner that PPCIGA did, that insurer arguably would be liable to Dr. Neville for payment of the excess verdict, see Cowden, supra, as well as foreseeable compensatory damages, see Birth Center, 567 Pa. at 401-403, 787 A.2d at 385-86, and punitive damages. See 42 Pa.C.S. §8371. However, because PPCIGA is not regarded as an “insurer” for purposes of bad faith liability, it does not possess the same duties and obligations as the insolvent insurer in that regard and cannot be held liable for its bad faith conduct.

Section 8371 permits a bad faith action only against an insurer, whose status is determined from the policy documents and the company’s conduct.

Brown v. Progressive Insurance · filed 2004-09-08

As Appellants correctly point out, an action for bad faith under 42 Pa.C.S.A. § 8371 can only be brought against an “insurer.” ... There is no simple rule for determining who is the insurer for purposes of the bad faith statute. ... The question is necessarily one of fact, to be determined both by examining the policy documents themselves, and by considering the actions of the company involved. Thus, we look at two factors: (1) the extent to which the company was identified as the insurer on the policy documents; and (2) the extent to which the company acted as an insurer.

Section 8371 does not protect conduct that precedes the execution of insurance coverage.

Brickman Group, Ltd. v. CGU Insurance Co. · filed 2004-12-29

Neither O’Donnell nor any other case interpreting § 8371 extends that section’s protection to conduct preceding the execution of insurance coverage.

Section 8371 creates a bad faith claim against an insurer, requires an unreasonable denial of benefits, and starts the limitations period at the initial denial.

Simon Wrecking Co., Inc. v. AIU Ins. Co. · filed 2004-12-29

Under Adamski, the statute of limitations started running at the point of initial denial. 738 A.2d at 1040. Also, the Third Circuit held that “the essence of a bad faith claim must be the unreasonable and intentional (or reckless) denial of benefits” and there is no bad faith under 42 Pa.C.S. § 8371 without a denial of benefits. UPMC Health System v. Metropolitan Life Ins. Co., 391 F.3d 497, 505 (3d Cir.2004). CNA’s argument that the statute of limitations bars Simon’s bad faith claim fails because CNA’s letter of December 20, 2000 did not actually deny coverage to Simon. Without a denial of benefits, there was no act of bad faith at the time of the December 20, 2000 letter and the statute of limitations for Simon’s bad faith claim against CNA could not have started to run at that time. Therefore, CNA’s motion for summary judgment as to Simon’s bad faith claim is denied.

Section 8371 applies to bad faith conduct during an insurer’s processing of a claim arising under an insurance policy, including a claim handled through a direct repair program.

Berg v. Nationwide Mut. Ins. Co., Inc. · filed 2012-04-17

Because the Bergs' lawsuit involves allegations that Nationwide acted in bad faith during its processing of a claim under their insurance policy with Nationwide, it is an action "arising under an insurance policy" for purposes of section 8371.

Section 8371 limits Pennsylvania bad faith actions to insureds pursuing claims against insurers.

Reginella Construction Co. v. Travelers Casualty & Surety Co. of America · filed 2013-09-05

The statutory scheme and wealth of case law is clear that tort bad faith actions must be brought pursuant to the Bad Faith Statute, § 8371, and that despite being remedial in nature, section 8371 applies only to insurers.

Section 8371 requires a bad-faith plaintiff to show that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

DOYLE v. LIBERTY MUTUAL INSURANCE · filed 2019-10-04

Under Pennsylvania law, to prevail in a bad faith action pursuant to 42 Pa. C.S.A. § 8371, a plaintiff must establish: “(1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.”

Section 8371 does not apply to surety bonds because a surety bond is not an insurance contract.

Upper Pottsgrove Township v. International Fidelity Insurance · filed 2013-10-02

Our analysis leads us to conclude that surety bonds are not insurance contracts within the meaning of § 8371. As a matter of law the Township cannot sustain its claim in Count IV.

Section 8371 applies to bad faith actions arising under an insurance policy and does not make a bad faith claim available to annuitants.

Halterman v. American National Insurance · filed 2014-06-10

These definitions give us some guidance in determining that annuities are not insurance policies, as contemplated by §8371.

Section 8371 permits an insured to assign an entitlement to assert damages under the section to an injured plaintiff and judgment creditor.

Allstate Prop & Casualty Ins Co, Aplt v. Wolfe, J. · filed 2014-12-15

We conclude that the entitlement to assert damages under Section 8371 may be assigned by an insured to an injured plaintiff and judgment creditor such as Wolfe.

Section 8371 permits an insured under an insurance policy to pursue a bad faith claim against the insurer.

EXCEL PHARMACY SERVICES, LLC v. LIBERTY MUTUAL INSURANCE COMPANY · filed 2019-09-12

Pennsylvania later enacted 42 Pa. C.S. § 8371, which permits an insured under a policy to pursue a claim of bad faith against the insurer.

Section 8371 creates a private cause of action against an insurer for bad faith, requiring a plaintiff to show that the insurer lacked a reasonable basis for denying benefits and knew of or recklessly disregarded that lack.

Kline v. Progressive Corporation · filed 2019-12-17

Bad faith claims under Pennsylvania law are governed by 42 Pa.C.S. § 8371. To state a claim for bad faith against an insurer under Pennsylvania law, a plaintiff must allege “(1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington Nat’l Ins. Co., 170 A.3d 364, 365 (Pa. 2017) (citing Terletsky v. Prudential Prop. & Cas. Ins. Co., 649 A.2d 680 (Pa. Super. Ct. 1994)).

Section 8371 requires a bad faith claim to allege facts showing that the insurer lacked a reasonable basis for denying benefits.

Brown v. Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. · filed 2019-12-27

Moreover, even were we inclined to credit Brown’s bald allegation that Kaiser is an insurer, we agree with Kaiser that Brown has failed to state a plausible claim for bad faith under 42 Pa.C.S. § 8371. As Kaiser notes, Brown’s complaint is devoid of any factual pleadings demonstrating that Kaiser lacked a reasonable basis for denying benefits.

Section 8371 requires sufficiently specific factual allegations to state a bad faith claim.

BICK v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2019-12-31

To prove such a claim, “a plaintiff must show by clear and convincing evidence that the insurer (1) did not have a reasonable basis for denying benefits under the policy and (2) knew or recklessly disregarded its lack of a reasonable basis in denying the claim.” ... A careful review of the wording of the allegations in the Complaint leads to the conclusion that plaintiff has failed to state a claim of bad faith with the requisite specificity required under Fed. R. Civ. P. 12(b)(6) and therefore, the motion to dismiss will be granted as to Count II.

Section 8371 authorizes statutory remedies when an insurer acts in bad faith toward the insured and does not create a separate institutional bad faith claim.

Wenk, J. v. State Farm Fire and Casualty · filed 2020-01-14

Finally, the trial court properly concluded that there is no separate cause of action of institutional bad faith. ... Section 8371, however, authorizes specified actions by the trial court “if the court finds that the insurer has acted in bad faith toward the insured . . . ,” not to the world at large.

Section 8371 requires clear and convincing proof that an insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack, and authorizes specified relief when the insurer acts in bad faith toward the insured.

Wenk, J. v. State Farm Fire and Casualty · filed 2020-02-07

As noted above, to establish a violation of Section 8371, the Wenks must have shown by clear and convincing evidence that State Farm lacked a reasonable basis for denying the Wenks benefits, and that it knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 requires an insured to prove by clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack of basis.

STEWART v. GEICO INSURANCE · filed 2020-02-19

To succeed on a bad faith claim, a plaintiff-insured must prove, by clear and convincing evidence: “(1) that the insurer did not have a reasonable basis for denying benefits under the policy; and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis in denying the claim.”

Section 8371 requires an insured pursuing a bad faith action to show that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

PARK v. EVANSTON INSURANCE COMPANY · filed 2020-03-04

Under Pennsylvania law, to prevail in a bad faith action pursuant to 42 Pa. C.S.A. § 8371, a plaintiff must establish: “(1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.”

Section 8371 requires a plaintiff to allege that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

SHETAYH v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2020-03-06

To state a claim for bad faith under 42 Pa. C.S. § 8371, a plaintiff must allege: “(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of reasonable basis.”

Section 8371 requires a plaintiff to show that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

KLEINZ v. UNITRIN AUTO AND HOME INSURANCE COMPANY · filed 2020-05-04

In order to recover under a bad faith claim under Pennsylvania statutory law, a plaintiff must show (1) that the defendant did not have a reasonable basis for denying benefits under the policy; and (2) that the defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.

Section 8371 allows a court to award interest, punitive damages, court costs, and attorney’s fees when an insurer acts in bad faith, and requires clear and convincing proof of the two stated elements.

CAPPUCCIO v. STATE FARM FIRE & CASUALTY INSURANCE COMPANY · filed 2020-05-08

Pennsylvania’s bad faith statute, 42 Pa.C.S.A. § 8371, allows the court to award interest, punitive damages, court costs, and attorney’s fees if it “finds that the insurer has acted in bad faith toward the insured.” To succeed on a claim for bad faith, a plaintiff must show by clear and convincing evidence that: “(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of reasonable basis.”

Section 8371 requires proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

GRAVES v. USAA GENERAL INDEMNITY COMPANY · filed 2020-06-16

Under Pennsylvania law, a plaintiff of a § 8371 bad faith claim must prove: 1) the insurer lacked a reasonable basis for denying benefits; and 2) the insurer knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 requires a plaintiff to prove that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

LOPEZ v. SELECTIVE INSURANCE COMPANY OF SOUTH CAROLINA · filed 2020-06-17

Under Pennsylvania law, to prevail in a bad faith action pursuant to 42 Pa. C.S.A. § 8371, a plaintiff must establish: “(1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.”

Section 8371 requires an insured to prove by clear and convincing evidence that the insurer lacked a reasonable basis for denying the claim and knew or recklessly disregarded that lack of a reasonable basis.

FRANKS v. NATIONWIDE PROPERTY & CASUALTY INSURANCE COMPANY · filed 2020-12-07

Under Pennsylvania law, to recover for bad faith, a plaintiff must prove, by clear and convincing evidence, that: (1) an insurer lacked a reasonable basis for denying a claim; and, (2) knew or recklessly disregarded its lack of reasonable basis in denying it.

Section 8371 gives an insured a private bad faith claim and requires clear and convincing proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

Durdach v. LM General Insurance Company · filed 2021-01-11

Although § 8371 does not define “bad faith,” “the Superior Court’s longstanding two-pronged test, first articulated in Terletsky,” is the “appropriate framework for analyzing bad faith claims under Section 8371.” Rancosky v. Washington Nat’l Ins. Co., 170 A.3d 364, 372, 376 (Pa. 2017) (citing Terletsky v. Prudential Property and Cas. Ins. Co., 649 A.2d 680, 688 (Pa. Super. Ct. 1994)). “To prevail in a bad faith insurance claim pursuant to Section 8371, a plaintiff must demonstrate, by clear and convincing evidence, (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.”

Section 8371 permits a bad faith claim when an insurer lacks a reasonable basis for denying benefits and knowingly or recklessly disregards that lack.

Chuplis v. State Farm Fire & Casualty Co. · filed 2021-03-19

Though none of these factual allegations alone may be sufficient to state a claim under § 8371, taken together, Plaintiff has successfully, though barely, stated a plausible claim of bad faith.

Section 8371 permits a court to award interest, punitive damages, and costs and attorney fees when an insurer acts in bad faith toward an insured.

Fuentes v. USAA General Indemnity Company · filed 2021-04-01

Under Pennsylvania law, an insured party can receive punitive damages and other relief if the insurer acts in bad faith toward the insured party. See 42 Pa. C.S.A. §8371. Section 8371 provides: ... The plaintiff has the burden in establishing the defendant acted in bad faith. “To succeed on a bad faith claim, a plaintiff must demonstrate by clear and convincing evidence ‘(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of reasonable basis.’” ... The court finds that plaintiff has not presented clear and convincing evidence that the defendant acted in bad faith when it denied his claim for UIM benefits for Santos Estate under his Policy.

Section 8371 permits recovery for insurer bad faith related to performing contractual defense and indemnification obligations, including denying benefits.

PALEK v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2021-04-21

The statute’s scope is limited, however, to “actions an insurer took when called upon to perform its contractual obligations of defense and indemnification of a loss.”

Section 8371 provides a cause of action for bad faith under an insurance policy.

INTEGRAL SCRAP & RECYCLING, INC. v. CONIFER HOLDINGS, INC. · filed 2021-04-30

42 Pa.C.S. § 8371 provides a cause of action for bad faith under an insurance policy.

Section 8371 lets an insured recover when an insurer lacks a reasonable basis for denying benefits and knowingly or recklessly disregards that lack.

MARONDA HOMES, LLC v. MOTORISTS MUTUAL INSURANCE COMPANY · filed 2021-05-20

To state a claim for bad faith insurance practices under § 8371, two elements are required: “(1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of reasonable basis” in denying the claim.

Section 8371 claims concerning an ERISA plan are preempted by ERISA.

Wall v. Reliance Standard Life Insurance Company · filed 2021-06-01

However, the United States Court of Appeals for the Third Circuit has ruled that claims brought pursuant to 42 Pa.C.S. § 8371 are preempted by ERISA, and the Court finds that ruling persuasive.

Section 8371 bad faith claims require sufficient facts showing that the insurer’s conduct was unreasonable and in bad faith.

LEVINE v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2021-09-30

Additionally, a bad faith claim “is generally an independent cause of action separate from the contract claim.” ... Although the duration of an adjuster’s inspection might be relevant to a claim of bad faith, it does not itself demonstrate bad faith. ... Thus, even accepting the cited allegations as true, Plaintiffs have not pled sufficient facts in their Amended Complaint to support a cognizable claim of bad faith for State Farm’s failure to conduct an adequate investigation. ... Therefore, Plaintiffs’ statutory bad faith claim, Count II of the Amended Complaint, will be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(6).

Section 8371 does not permit a statutory bad faith claim by someone who is neither insured under the relevant policy provisions nor a third-party beneficiary.

WEISER v. GREAT AMERICAN INSURANCE COMPANY · filed 2020-04-13

Because Weiser is neither an insured under the relevant portions of the lender-placed policy nor a third-party beneficiary, he cannot assert claims for breach of contract or statutory bad faith.

Section 8371 authorizes interest, punitive damages, and costs and attorney fees when an insurer acts in bad faith toward an insured.

INTEGRAL SCRAP & RECYCLING, INC. v. CONIFER HOLDINGS, INC. · filed 2021-03-04

Under Pennsylvania law, to recover for bad faith, a plaintiff must prove, by clear and convincing evidence, that: (1) an insurer lacked a reasonable basis for denying a claim; and, (2) knew or recklessly disregarded its lack of reasonable basis in denying it.

Section 8371 provides relief for bad faith actions taken by an insurer.

KEYSTONE SPORTS AND ENTERTAINMENT LLC v. FEDERAL INSURANCE COMPANY · filed 2021-12-07

We also reject Plaintiffs’ bad faith and declaratory judgment claims for the same reasons discussed above. 42 Pa.C.S.A. § 8371 is Pennsylvania’s bad faith statute on insurance policies. But the statute specifically provides relief for bad faith actions that “the insurer” has taken.

Section 8371 provides the exclusive statutory remedy for an insurer’s handling of insurance claims.

WINGROVE v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2022-03-28

Section 8371 provides the exclusive statutory remedy applicable to claims handling.

Section 8371 does not allow a bad faith claim based on an insurer’s allegedly improper cancellation of a policy.

DEVIN DALESSIO TRUCKING, LLC v. PROGRESSIVE CORPORATION · filed 2022-05-20

Thus, the Court concludes that Plaintiffs cannot base a § 8371 claim on Defendants’ allegedly improper cancellation of a policy.

Section 8371 does not support a bad faith claim based on an insurer’s report of alleged insurance fraud to the proper legal authorities.

PERSICHINI v. NATIONWIDE GENERAL INSURANCE COMPANY · filed 2022-07-18

Plaintiffs’ third theory fails because reporting alleged insurance fraud to proper legal authorities does not support a claim for bad faith.

Section 8371 does not permit a party protected by a surety bond to bring a bad faith claim against the surety because a surety contract is not an insurance policy.

Eastern Steel Const. v. International Fidelity · filed 2022-09-01

Like the court in Superior Precast, Inc., we too conclude that the term insurance policy in Section 8371 does not include surety contracts and that, as a result, a party protected under a surety bond, such as Eastern, may not bring a bad faith claim against a surety, such as IFIC.

Section 8371 does not impose bad faith liability on an entity that neither entered into nor assumed the risk of an insurance contract.

G.S. CARPENTRY, INC. v. MARKEL SERVICE INC. · filed 2023-07-31

MSI, which did not enter into, or assume the risk of, a contract of insurance, is not an “insurer” under § 8371 and therefore cannot be liable.

Section 8371 does not permit a bad faith claim against a claims adjuster that merely assists with a claim.

Three Rivers Hydroponics LLC v. Florists Mutual Insurance Co · filed 2023-08-29

A claims adjuster is not an insurer under the statute. HSB cannot be considered an insurer under § 8371.

Section 8371 allows an insured’s assignee to pursue a bad faith claim when the assignee plausibly qualifies as an injured plaintiff or judgment creditor.

Cutting Edge Tree Professionals, LLC v. State Farm Fire Claims Company · filed 2024-01-04

Here, like in Royal Water, the allegations in the Complaint, taken in the light most favorable to the Plaintiff, sufficiently allow for the inference that Plaintiff is both an injured plaintiff and a judgment creditor. ... Accordingly, viewing the Complaint in the light most favorable to Plaintiff, Plaintiff has standing to pursue the bad faith claim and Defendants’ Motion to Dismiss as to this Count is denied.

A person who is neither insured nor a policy beneficiary lacks standing to bring a Section 8371 bad faith claim.

BRIGHTHOUSE LIFE INSURANCE COMPANY v. WALKER WALTON · filed 2024-02-13

Because the undisputed facts demonstrate that Fulton/Harper are not beneficiaries, see supra Section IV.A, they lack standing.

Section 8371 requires specific facts supporting a bad faith claim; conclusory allegations about an insurer’s investigation are insufficient.

WARREN v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2024-06-26

But the SAC is devoid of sufficient allegations as to the timing, methods, procedures, or length of the investigation by which the evaluation was conducted. Therefore, without more, Plaintiffs do not sufficiently allege a bad faith claim and the Count II will be dismissed.

Section 8371 allows a bad faith claim only against an insurer.

DOUGHERTY v. ESSENTIA INSURANCE COMPANY · filed 2025-09-17

A defendant cannot be liable under section 8371 if they are not an insurer.

Section 8371 does not apply to bad faith claims arising from surety bonds.

Eastern Steel, Cross Aplt v. Int Fidelity Ins. Co. · filed 2026-02-18

Section 8371 clearly and unambiguously does not encompass a surety bond.

Section 8371 permits a bad faith claim only against an insurer; the court considers policy documents and whether the defendant acted as an insurer.

Oil City Hospitality v. Amalgamated Insurance · filed 2026-06-15

There are no policy documents identifying Amalgamated as the insurer and the evidence does not show that Amalgamated acted as the insurer.

Section 8371 requires proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

Mark I Restoration SVC v. Assurance Co. of America · filed 2004-10-13

Liability under 42 Pa. Cons. Stat. § 8371 requires a showing that the insurer lacked a reasonable basis for denying benefits and that the insurer knew or recklessly disregarded its lack of a reasonable basis for denial.

Section 8371 requires the insured to prove that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

Pittas v. Hartford Life Insurance · filed 2007-05-17

Thus, to recover on a bad faith claim, the insured must prove: (1) that the insurer did not have a reasonable basis for denying benefits under the policy; and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis in denying the claim.

Section 8371 requires evidence that the insurer lacked a reasonable basis for denying benefits and knew or disregarded that lack; failure to follow best practices alone does not establish bad faith.

Smith v. Continental Casualty Co. · filed 2009-10-08

For the Smiths to succeed, there must be evidence from which a factfinder could conclude that Continental had no “reasonable basis for denying benefits” and that it knew of or disregarded the lack of a reasonable basis. Here, there is evidence of neither: Continental clearly did have a reasonable basis for the denial of coverage, see supra, and there is no evidence whatsoever to support the second prong. While perhaps Continental should have spoken with Sprecher before it made a final coverage decision, a failure to follow best practices does not give rise to a bad faith claim.

Section 8371 requires an insured to show that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

Colella v. State Farm Fire & Casualty Co. · filed 2011-01-20

“[T]o recover under a claim of bad faith, the plaintiff must show that the defendant did not have a reasonable basis for denying benefits under the policy and that defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.” ... Further, because State Farm had a reasonable basis for denying the Colellas’ claim, the Colellas could not establish the elements of the cause of action.

Section 8371 requires clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a basis.

Verdetto v. State Farm Fire & Casualty Co · filed 2013-01-17

“To recover for bad faith, „a plaintiff must show by clear and convincing evidence that the insurer (1) did not have a reasonable basis for denying benefits under the policy and (2) knew or recklessly disregarded its lack of a reasonable basis in denying the claim.‟”

Section 8371 bad faith requires an unreasonable, intentional or reckless denial of benefits; a claim fails when the insured submitted no claim and the insurer denied no benefits.

U.S. Bank, National Ass'n v. First American Title Insurance · filed 2013-05-08

In this case, U.S. Bank never submitted a claim, and First American never denied it benefits until this lawsuit was filed. Accordingly, there is no genuine issue of material fact to put a bad faith claim in play.

Section 8371 does not require proof that the insurer acted from an improper motive, such as ill will or self-interest.

McMahon v. Medical Protective Co. · filed 2015-03-20

The presence of an improper motive, however, is not an element of a statutory bad faith claim under Pennsylvania law.

An insured must prove bad faith under § 8371 by clear and convincing evidence.

Miezejewski v. Infinity Auto Insurance Compan · filed 2015-04-28

Here, the District Court correctly established the plaintiff’s burden to demonstrate bad faith by clear and convincing evidence.

Section 8371 requires facts supporting a plausible inference that the insurer lacked a reasonable basis to deny benefits and knew or recklessly disregarded that lack of a basis.

Papurello v. State Farm Fire & Cas. Co. · filed 2015-11-16

To state a claim under § 8371, plaintiffs must allege facts from which the court can draw the plausible inference that defendant: (1) had no reasonable basis upon which to deny plaintiffs’ benefits under the Policy; and (2) knew about or recklessly disregarded its lack of a reasonable basis to deny plaintiffs’ claim.

Section 8371 requires clear and convincing evidence that an insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of basis.

Ke v. Liberty Mutual Insurance Co · filed 2023-01-10

To make out a claim under this statute, Ke was required to show, by clear and convincing evidence, that Liberty Mutual (1) “had no reasonable basis for denying benefits under the policy” and (2) “knew or recklessly disregarded its lack of reasonable basis in denying the claim.”

A claim under § 8371 must plead specific facts showing that the insurer lacked a reasonable basis for its conduct and knew or recklessly disregarded that lack of a reasonable basis.

McDonough v. State Farm Fire & Cas. Co. · filed 2019-02-07

He alleges no factual content indicating that State Farm lacked a reasonable basis for its tendered offer or that it knew or recklessly disregarded a lack of reasonable basis for the offer.

A § 8371 bad faith claim must allege facts about the insurer’s conduct; merely reciting the claim’s elements is insufficient.

Miller v. State Farm Mutual Automobile Insurance Company · filed 2020-06-17

Since Miller has failed to do anything more than state the elements of her cause of action and provide conclusory allegations about State Farm’s conduct, the court will grant the motion to dismiss and Count II of the complaint will be dismissed without prejudice.

Section 8371 requires factual allegations supporting a reasonable inference that the insurer acted in bad faith; denial of a claim alone does not suffice.

O'BRIEN v. LM GENERAL INSURANCE COMPANY · filed 2021-07-28

Without factual allegations from which the court can reasonably conclude that Defendant acted in bad faith, the Court must dismiss Count II for failure to state a claim.

Section 8371 requires factual allegations supporting a plausible inference of insurer bad faith; conclusory allegations about how the insurer handled a claim are insufficient.

Dayton v. The Automobile Insurance Company of Hartford, Connecticut · filed 2021-11-05

Plaintiff’s allegations in Paragraphs 40(b)-(c) and 40(e) regarding the fairness and timeliness of defendant’s evaluation of plaintiff’s claim are also conclusory without further factual support as to why plaintiff’s evaluation was unreasonable.

Section 8371 requires facts plausibly showing that an insurer knew or recklessly disregarded its lack of a reasonable basis for denying or delaying a claim; a roughly six-month delay alone is insufficient.

White v. Travelers Insurance Company · filed 2020-12-07

Plaintiff has not, however, pled facts sufficient to plausibly allege the second element of a bad faith claim, Travelers’ knowledge or reckless disregard of its lack of a reasonable basis for denying or delaying the payment of the claim.

Section 8371 requires facts supporting an inference that the insurer lacked a reasonable basis for its payment; a lower offer followed by a higher payment alone does not state bad faith.

BOND v. GEICO · filed 2021-10-25

His mere claim that Geico offered less money and then more money is insufficient to state a claim for bad faith.

Section 8371 provides remedies for insurer bad faith and requires clear and convincing proof that the insurer lacked a reasonable basis and knowingly or recklessly disregarded that lack.

Racioppi, A. v. Progressive Insurance Company · filed 2016-05-11

To prove bad faith, a plaintiff must show by clear and convincing evidence that the insurer (1) did not ... have a reasonable basis for denying benefits under the policy and (2) knew or recklessly disregarded its lack of a reasonable basis in denying the claim. ... Progressive offered to renew her policy, and she refused to make payment. This is not a basis for a bad faith claim. ... However, there is no evidence that Progressive acted in bad faith by removing the suit to federal court; in fact, the federal district court denied appellant’s motion for attorney’s fees. Progressive’s removal to federal court was a litigation tactic that had nothing to do with its denial of UIM benefits under the insurance contract. The trial court did not err in granting summary judgment for Progressive on appellant’s bad faith claims.

Section 8371 requires clear and convincing evidence that an insurer lacked a reasonable basis to deny a claim and knew it lacked that basis.

KE v. GUESS · filed 2021-11-09

To prove that Liberty Mutual acted in bad faith in failing to pay a claim, Mr. Ke must show “by clear and convincing evidence” that Liberty Mutual lacked a “reasonable basis” to deny him the repairs and that it “knew” that it had no reasonable basis to do so.

Section 8371 requires clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

BORDEN v. NGM INSURANCE COMPANY · filed 2023-03-08

To recover on a statutory bad faith claim, the claimant must show by clear and convincing evidence that the insurer (1) lacked a reasonable basis for denying benefits under the policy and (2) knew or recklessly disregarded the lack of reasonable basis for the claim denial.

Section 8371 requires clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

Washington Street LLC v. Nationwide Property & Casualty Insurance Co · filed 2023-09-13

To prevail on a bad faith claim, a plaintiff must demonstrate “by clear and convincing evidence, (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.” ... In sum, Washington Street has not shown by clear and convincing evidence – the applicable standard of proof – that Nationwide acted in bad faith in processing Washington Street’s insurance claim.

Section 8371 requires factual allegations supporting an inference of insurer bad faith; conclusory assertions about a claim’s investigation and denial are insufficient.

LEYMAN v. ECONOMY FIRE & CASUALTY COMPANY · filed 2023-11-27

Absent additional facts regarding Leyman and Podyuchenko’s insurance claim and the accompanying investigation, communication, and denial of coverage, the Court is unable to infer bad faith on Economy Fire’s part.

A § 8371 bad faith claim requires facts showing an unreasonable valuation; calling settlement offers “lowball” is insufficient.

MOHAMED v. PROGRESSIVE ADVANCE INSURANCE COMPANY · filed 2022-04-11

She must do more than characterize its settlement offers as “lowball” to show it unreasonably valued her claim.

Section 8371 requires a bad faith complaint to plausibly allege that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

COOPER v. LIBERTY MUTUAL GENERAL INSURANCE COMPANY · filed 2022-04-14

A complaint asserting a bad faith claim pursuant to 42 Pa. Cons. Stat. § 8371 must plausibly allege “(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis.” Klinger v. State Farm Mut. Auto. Ins. Co., 115 F.3d 230, 233 (3d Cir. 1997) (citing Terletsky v. Prudential Prop. & Cas. Ins. Co., 649 A.2d 680, 688 (Pa. Super. Ct. 1994)).

A documented disparity between an insurer’s offer and the insured’s claimed damages, considered with delay in handling the claim, can support a plausible bad faith claim under § 8371.

NAZARIO v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2022-07-25

Thus, Nazario’s allegations related to Nationwide’s delay in handling the UIM claim give weight to his claim that the insurer engaged in bad faith. ... Moreover, Nazario similarly alleges that Nationwide offered him only 5% of his policy limits and less than 1% of what he documented. Accordingly, Nazario has alleged facts sufficient to state a claim for bad faith at this stage of the litigation, and Nationwide’s motion to dismiss is denied.

Section 8371 permits a bad faith claim to survive dismissal when pleaded facts plausibly show that the insurer lacked a reasonable basis to deny benefits and recklessly disregarded that lack of a reasonable basis.

Martha Snider, As Attorney In Fact for Isadore Goldhirsh v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2022-12-08

Stated succinctly, Plaintiff posits that Defendant—acting under an unreasonable interpretation of that provision and based on a blatant misrepresentation of the facts—denied coverage despite Plaintiff’s evidence to the contrary. Such allegations, if substantiated, could provide a sufficient basis for a factfinder to infer that Defendant lacked a reasonable basis for denying benefits and recklessly disregarded such lack of a reasonable basis. Accordingly, I decline to dismiss the bad faith claim at this time.

Section 8371 bad faith claims require facts that plausibly show the insurer lacked a reasonable basis for denying coverage.

HANNA v. PALISADES PROPERTY & CASUALTY INSURANCE COMPANY · filed 2023-06-21

Plaintiffs do not provide sufficient facts to support these allegations or otherwise plausibly show Defendant lacked a reasonable basis for the denial of coverage.

Section 8371 requires clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a basis.

Mazer v. Frederick Mutual Insurance Company · filed 2024-03-04

A §8371 bad faith claim requires that a plaintiff “present clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Wash. Nat'l Ins. Co., 170 A.3d 364, 365 (Pa. 2017).

Section 8371 permits a plausible bad faith claim based on an insurer’s refusal to reinspect property after considering and then denying coverage.

DORSEY v. ALLSTATE INSURANCE COMPANY · filed 2024-10-24

Allstate’s refusal, in conjunction with its decision to refuse coverage after previously considering coverage on the basis of Arrow’s report, makes it plausible that Allstate conducted an “unfair and unreasonable investigation” (id. at ¶ 28(f)).

Section 8371 requires clear and convincing evidence that an insurer lacked a reasonable basis to deny benefits and knew or recklessly disregarded that lack; an insured cannot establish bad faith when the insurer had no duty to defend or indemnify.

D'ANGELO & EURELL v. ALLIED WORLD SPECIALTY INSURANCE COMPANY · filed 2025-08-21

To recover in a bad faith action under 42 Pa. Cons. Stat. § 8371, “the plaintiff must present clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington Nat’l Ins. Co., 170 A.3d 364, 365 (Pa. 2017). Because we have determined that Allied had no duty to defend or indemnify plaintiffs under the policy, plaintiffs cannot satisfy the elements of a bad faith claim.

A § 8371 bad faith claim survives dismissal when pleaded facts plausibly show that the insurer ignored evidence contrary to its coverage decision and denied benefits without a reasonable basis.

Logan v. ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2025-05-08

These allegations are more than legal conclusions and contain sufficient plausible facts that Allstate acted in bad faith by ignoring evidence contrary to its coverage decision, misrepresenting facts to plaintiffs, and denying their claim without a reasonable basis.

A § 8371 bad faith claim survives summary judgment when material facts remain disputed about whether the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

800-209, LLC v. THE CINCINNATI INDEMNITY COMPANY · filed 2025-07-31

Accordingly, based on the differing positions, there is a genuine dispute of material fact concerning whether Defendant had a reasonable basis for refusing to pay for Plaintiff’s “fire watch” costs incurred after March 22, 2022 and knew or recklessly disregarded the lack of a reasonable basis.

A Section 8371 bad faith claim must plead specific facts showing what the insurer did and why its conduct was in bad faith.

Campanile v. THE HANOVER INSURANCE COMPANY · filed 2025-08-13

To survive a motion to dismiss, plaintiffs must make specific factual allegations demonstrating what defendant’s conduct was, and why such conduct was in bad faith.

A Section 8371 bad faith claim must allege facts about the insurer’s claim handling; conclusory allegations do not state a plausible claim.

McKee · filed 2026-03-31

The averments, as pleaded, are too conclusory to support a plausible bad faith claim.

Section 8371 requires clear and convincing evidence to prove insurer bad faith.

Regina Polselli Rudolph T. Polselli, Plaintiff-Intervenor v. Nationwide Mutual Fire Insurance Company · filed 1994-05-10

There being no change in Pennsylvania law, we once again iterate that, under Pennsylvania law, clear and convincing evidence is necessary to prove bad faith.

Section 8371 allows a court evaluating an insurer’s bad faith to consider conduct that allegedly violates the UIPA or insurance regulations.

Romano v. Nationwide Mutual Fire Insurance · filed 1994-08-26

Although the trial court lacks the requisite jurisdiction to impose sanctions under the various provisions of the UIPA and insurance regulations, we find that the rules of statutory construction permit a trial court to consider, either sua sponte or upon the request of a party, the alleged conduct constituting violations of the UIPA or the regulations in determining whether an insurer, like Nationwide, acted in “bad faith.”

Section 8371 treats alleged UIPA violations as conduct that may be considered when deciding whether an insurer acted in bad faith.

Certainteed Corp. v. Federal Insurance · filed 1995-11-17

While “[t]he majority of courts to have considered the issue have held that bad faith conduct in the context of section 8371 refers to a bad faith denial of coverage,” Grove v. Aetna Casualty & Sur. Co., 855 F.Supp. 113, 115 (W.D.Pa.1993) (quotations omitted), alleged conduct constituting violations of the Unfair Insurance Practices Act (“UIPA”), 40 Pa.S. § 1171.1 et seq., can also be considered in determining whether an insurer acted in bad faith, see MacFarland v. United States Fidelity & Guar. Co., 818 F.Supp. 108, 110 (E.D.Pa.1993); Rottmund v. Continental Assurance Co., 813 F.Supp. 1104, 1109 (E.D.Pa.1992); Coyne v. Allstate Insurance Co., 771 F.Supp. 673, 678 (E.D.Pa.1991).

Section 8371 permits an insured to recover for an insurer's bad faith only when the insurer breaches the implied contractual duty of good faith.

Monticello Insurance v. Spinning Wheels Inc. · filed 1996-07-23

Thus, an insured may bring a claim that the insurer has acted in bad faith toward the insured only in situations in which there has been a breach of the implied obligation of good faith imposed through the case law.

Section 8371 requires an insured to prove by clear and convincing evidence that the insurer lacked a reasonable basis for denying a claim and knew or recklessly disregarded that lack of reasonable basis.

Quaciari v. Allstate Insurance · filed 1998-03-24

? cases brought under Pennsylvania’s bad faith statute, 42 Pa.C.S.A. § 8371, a plaintiff must show, by clear and convincing evidence, that the insurer lacked a reasonable basis for its denial of a claim, and that it knew of, or recklessly disregarded, the lack of a reasonable basis.

Section 8371 requires clear and convincing proof that the insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack of basis.

Frog, Switch & Manufacturing Co. v. Travelers Insurance · filed 1998-09-21

To prevail under the bad faith statute, a plaintiff must prove by clear and convincing evidence: “(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of reasonable basis.”

Section 8371 does not require an express denial of a claim for a bad faith claim to exist.

Boyd v. Windsor Insurance · filed 1999-05-10

Still, we would reiterate that Romano apparently does not require the denial of a claim for bad faith to exist.

Section 8371 permits evidence of an insurer’s bad-faith conduct during litigation to be considered in a bad-faith action.

O'Donnell Ex Rel. Mitro v. Allstate Insurance Co. · filed 1999-06-30

We find the reasoning of Rottmund persuasive and, for the reasons set forth above, we now hold that the conduct of an insurer during the pendency of litigation may be considered as evidence of bad faith under section 8371.

Section 8371 provides remedies for an insurer’s bad faith in an action arising under an insurance policy, and no duty to indemnify means no statutory bad faith.

Brookville Mining Equipment Corp. v. Selective Insurance Co. of America · filed 1999-07-07

Because we find that Selective had no duty to indemnify plaintiffs, it did not act in bad faith in violation of 42 Pa.C.S. § 8371.

Section 8371 bad faith is evaluated by whether the insurer lacked a reasonable basis for its conduct and knew or recklessly disregarded that lack.

Wiedinmyer v. Harleysville Mutual Insurance · filed 1999-08-05

While 42 Pa.C.S. §8371 does not define the term “bad faith,” our Superior Court has identified bad faith on the part of an insurer as: “any frivolous or unfounded refusal to pay proceeds of a policy; it is not necessary that such refusal be fraudulent. For purposes of an action against an insurer for failure to pay a claim, such conduct imports a dishonest purpose and means a breach of a known duty (i.e., good faith and fair dealing), through some motive of self-interest or ill will; mere negligence or bad judgment is not bad faith.” Romano v. Nationwide Mutual Fire Insurance Co., 435 Pa. Super. 545, 553, 646 A.2d 1228, 1232 (1994) (citing Black’s Law Dictionary, 139, 6th ed. 1990). Where an insured accuses an insurer of bad faith in its handling of a claim, the burden is on the insured to demonstrate that the insurer had no reasonable basis for its actions and that the insurer either knew or recklessly disregarded its lack of a reasonable basis for handling the insured’s claim as it did.

Section 8371 permits punitive damages, attorney fees, and costs when an insurer acts in bad faith by refusing to pay an insured's claim.

TDG Partnership v. Regis Insurance · filed 1999-09-10

In an action arising under an insurance policy, a court may award to the insured punitive damages, attorneys’ fees and costs if the court finds that the insurer acted in bad faith in refusing to pay the insured’s claim. 42 Pa.C.S. §8371.

Following the MVFRL peer review process alone does not establish § 8371 bad faith; a plaintiff must point to specific facts showing bad faith.

Carbaugh v. Prudential Property & Casualty Insurance · filed 1999-10-05

There is no authority for the assertion that an insurer acts in bad faith merely by following the peer review process set out in the MVFRL. In response to a motion for summary judgment, the plaintiff must point to facts which specifically show the insurer used the peer review process in a manner constituting bad faith. He cannot simply rest on the idea that a PRO has an inherent bias in favor of the insurer in order to meet the defendant’s summary judgment motion. The instant plaintiff has adduced no specific evidence showing the defendant acted in bad faith by using the peer review process provided for in section 1797. Therefore, the defendant is entitled to summary judgment on the bad faith claim.

Section 8371 requires an insured seeking bad faith relief to show that the insurer lacked a reasonable basis for denying benefits and knew of or recklessly disregarded that lack.

Morrison v. Mountain Laurel Assurance Co. · filed 2000-02-16

When evaluating bad faith under section 8371, a trial court may look to (1) other cases construing the statute and the law of bad faith in general, (2) the plain meaning of the terms in the statute, and/or (3) other statutes addressing the same or similar subjects. ... Thus, Appellees failed to show that Appellants lacked a reasonable basis in denying the claim. We must therefore reverse the trial court's findings to the contrary and remand the case for judgment to be entered in favor of Appellants.

Section 8371 requires clear and convincing proof that the insurer lacked a reasonable basis for denying the claim and knew or recklessly disregarded that lack of basis.

Krisa v. Equitable Life Assurance Society · filed 2000-04-06

These two elements — absence of a reasonable basis for denying a claim under the policy and knowledge or reckless disregard of the lack of such reasonable basis — must be proven by clear and convincing evidence.

Section 8371 requires proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

McCabe v. State Farm Mutual Automobile Insurance · filed 1999-01-13

“[T]o recover under a claim for bad faith, the plaintiff must show that the defendant did not have a reasonable basis for denying benefits under the policy and that defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 lets an insured sue an insurer for bad faith and requires proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

Henderson v. Nationwide Mutual Insurance · filed 2001-04-25

Under Pennsylvania law, an insured may bring a cause of action against an insurer who has acted in bad faith. See 42 Pa.C.S.A. § 8371. To recover on a bad faith claim, a plaintiff must show both “(1) that the insurer lacked a reasonable basis for denying benefits; and (2) that the insurer knew or recklessly disregarded its lack of reasonable basis.”

Section 8371 requires an insured claiming bad faith to prove by clear and convincing evidence that the insurer lacked a reasonable basis and knew of or recklessly disregarded that lack.

Ania v. Allstate Insurance · filed 2001-05-29

A claim of bad faith regarding an action by an insurance company requires plaintiffs to show, by clear and convincing evidence, that the insurer lacked a reasonable basis for its action, and that it knew of, or recklessly disregarded, the lack of a reasonable basis.

Section 8371 standing is limited to an insured under the policy; a person who is not an insured cannot invoke the statute.

Federico v. Charterers Mut. Assur. Ass'n Ltd. · filed 2001-08-27

42 Pa. C.S.A. § 8371 permits recovery in an action on an insurance policy “if the court finds that the insurer acted in bad faith toward the insured.” 42 Pa. C.S.A. § 8371 (emphasis added). This statute is inapplicable to the current proceedings for two reasons. First, 42 Pa. C.S.A. § 8371 only grants standing to an individual who is an “insured” under the insurance policy in question, see Klinger v. State Farm Mut. Auto. Ins. Co., 895 F.Supp. 709, 715-16 (M.D.Pa.1995), and Federico is not an “insured” under the 1996 Rules. See 1996 Rules, Ex. A, Definitions, p. 4-5 (Doc. No. 7 Ex. 2). Second, Federico has not alleged bad faith in his amended complaint.

Section 8371 requires an insured to prove that the insurer lacked a reasonable basis for its actions and knew or recklessly disregarded that lack to establish bad faith.

Ravindran v. Harleysville Insurance · filed 2002-04-08

To be successful in prosecuting a bad faith claim in Pennsylvania, the insured must prove: (1) the insurer lacked a reasonable basis for its actions, and (2) the insurer knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 provides an insured a statutory remedy when an insurer denies insurance benefits in bad faith and requires a lack of reasonable basis plus knowing or reckless disregard.

Risha v. Farmers Fire Insurance Agency · filed 2001-05-01

The elements of the statutory cause of action for bad faith are that the insurer (1) lacked a reasonable basis for denying benefits; and (2) knew or recklessly disregarded its lack of a reasonable basis. ... Here, based on Jesse Risha’s admissions in both his deposition testimony and statement given under oath, which are both included in the record, we believe that defendant had sufficient grounds to establish a reasonable basis upon which to deny Jesse Rishas’s claim. We believe that clear and convincing evidence exists to establish that Jesse Risha’s material misrepresentation with respect to question number seven was fraudulent. Accordingly, we find that defendant is entitled to judgment as a matter of law to Jesse Risha’s bad faith claim.

Section 8371 requires a bad faith claimant to show that the insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack of a reasonable basis.

Atiyeh v. Liberty Mutual Fire Insurance · filed 2002-01-08

To recover on a bad faith claim, the plaintiff must show both: 1) that the insurer lacked a reasonable basis for denying benefits; and 2) that the insurer knew or recklessly disregarded its lack of reasonable basis.