42 Pa. Cons. Stat. § 8371

Section 8371 lets an insured recover statutory interest, counsel fees and punitive damages by proving the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

McAndrew v. Donegal Mutual Insurance · filed 2002-05-17

42 Pa.C.S. §8371 enables an insured to recover statutory interest, counsel fees and punitive damages against an insurer which “has acted in bad faith toward the insured” in a first-party context. To recover under the bad faith statute, an insured must show by clear and convincing evidence that: (1) the insurer did not have a reasonable basis for denying benefits under the policy; and (2) the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.

Section 8371 requires bad faith to be proven by clear and convincing evidence.

Schoffstall v. Nationwide Insurance · filed 2002-06-28

In any case, bad faith must be proven by clear and convincing evidence and not merely insinuated.

Section 8371 gives first-party beneficiaries a remedy for bad-faith claim handling and permits interest, punitive damages, costs, and attorney fees.

Holmes v. Septa · filed 2003-06-25

Pennsylvania’s General Assembly created the bad faith statute to provide first-party beneficiaries with a remedy against a company that engages in bad faith conduct when processing claims. 42 Pa.C.S. §8371. The statute provides a number of remedies including interest on the amount of the claim, punitive damages, and/or court costs and attorney fees.

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

Corch Construction Co. v. Assurance Co. of America · filed 2003-10-28

Bad faith exists where the insurer did not have a reasonable basis for denying benefits under the policy and that the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim. Bad faith on the part of an insurer is any frivolous or unfounded refusal to pay proceeds of a policy. Terletsky v. Prudential Property and Casualty Insurance Company, 437 Pa. Super. 108, 649 A.2d 680 (1994). The plaintiff must prove bad faith through clear and convincing evidence. Terletsky, supra. While the statute itself does not define bad faith, case law has set forth what is necessary to prove bad faith under 42 Pa.C.S. §8371.

Section 8371 requires an insurer to lack a reasonable basis for denying benefits and to know or recklessly disregard that lack of a reasonable basis.

Toy v. Metropolitan Life Insurance · filed 2004-10-20

Finally, Appellant has faded to establish the requisite elements for a bad faith claim under- Section 8371, namely, “(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.” Booze v. Allstate Ins. Co., 750 A.2d 877, 880 (Pa.Super.2000), appeal denied, 564 Pa. 722, 766 A.2d 1242 (2000) (finding that an insured had an obligation to plead the aforementioned elements, and failed to do so, when she alleged solely in the complaint that the insurer mislead her into purchasing particular coverage). As Appellant cannot pursue a bad faith claim under any of these theories, we affirm the trial court’s decision to enter summary judgment on this count of the complaint.

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

Rutkowski v. Allstate Insurance · filed 2004-11-10

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

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

J.C. Penney Life Insurance Company v. Christian J. Pilosi James C. Pilosi · filed 2004-12-28

Under Pennsylvania law, a plaintiff can only recover for bad faith of an insurer under 42 Pa.C.S. § 8371 if he or she shows, 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 provides a statutory remedy for insurer bad faith and allows interest, punitive damages, and costs and attorney fees when bad faith is found.

Galko v. Harleysville Pennland Insurance · filed 2005-01-18

We are satisfied that the plaintiff has fulfilled her burden and has established both prongs of the test by clear and convincing evidence to substantiate a claim of bad faith against the defendant. The defendant has failed to illustrate that any genuine issue of material fact exists. Therefore this court shall grant the plaintiff’s motion for partial summary judgment on the issue of bad faith.

Section 8371 allows a court to award interest, punitive damages, and court costs and attorney fees when an insurer has acted in bad faith toward the insured.

DeShong v. State Farm Life Insurance · filed 2005-03-18

Actions involving alleged bad faith under an insurance policy are controlled by statute. 42 Pa.C.S. §8371 states: ... “(3) Assess court costs and attorney fees against the insurer.”

Section 8371 allows a court to award interest, punitive damages, court costs, and attorney fees when an insurer acts in bad faith toward an insured in an action arising under an insurance policy.

Rosborough v. Farmers Mutual Fire Insurance · filed 2005-07-29

“In an action arising under an insurance policy, if the court finds that an insurer has acted in bad faith toward the insured, the court may take all of the following actions: “(1) Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3 percent. “(2) Award punitive damages against the insurer. “(3) Assess court costs and attorney fees against the insurer.”

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

Condio v. Erie Insurance Exchange · filed 2006-04-25

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.

Section 8371 addresses bad faith when an insurer frivolously or unfoundedly refuses to pay policy proceeds.

Aetna Inc. v. Lexington Insurance · filed 2005-10-27

As noted, our Superior Court’s definition of “bad faith” under 42 Pa.C.S. §8371 provides: “‘Bad faith’ on [the] part of [an] insurer is any frivolous or unfounded refusal to pay proceeds of a policy; . . . .” MGA Inc. Co., 699 A.2d at 754. The statement that plaintiff asserts constitutes bad faith has nothing to do with a refusal to pay the proceeds of a policy. Instead, defendants’ assertions were simply defendants’ position with regard to plaintiff’s interpretation of the settlement agreement. Accordingly, this court finds that defendants’ statements do not fit within the definition of bad faith.

Section 8371 allows an insured to bring a bad faith claim against its insurer and requires clear and convincing proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of basis.

American Home Assurance Co. v. Merck & Co., Inc. · filed 2006-10-27

Under Pennsylvania insurance law applicable to this action, an insured can bring a claim against its insurer for bad faith. See 42 Pa.C.S. § 8371 (“Section 8371”). The insured 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.”

Section 8371 requires an insured to prove by 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.

Pidro v. State Farm Insurance · filed 2006-12-22

The Superior Court has clearly established that a claim brought under 42 Pa.C.S. §8371 is separate and distinct from an underlying breach of contract claim. ... Therefore, it is necessary for this court to analyze plaintiffs’ bad faith claim even though the underlying breach of contract claim is defective. ... To establish a bad faith claim under Pennsylvania law, the Superior Court has consistently required that the insured 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 a reasonable basis.” ... As such, this court finds that defendants’ motion for summary judgment on the bad faith claim is granted.

Section 8371 liability is governed by the two-part Terletsky bad faith standard.

DeWalt v. Ohio Casualty Insurance · filed 2007-04-10

The two-part standard set- out in Terlet-sky defines the scope of liability for a § 8371 claim.

Section 8371 permits bad faith relief when the insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack; self interest or ill will is evidence of the second part, not a separate element.

Greene v. United Services Automobile Ass'n · filed 2007-11-20

We, therefore, adopt this rationale. More specifically, we hold that the “motive of self-interest or ill will” level of culpability is not a third element required for a finding of bad faith, but it is probative of the second element identified in Terletsky, i.e., “the insurer knew or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 provides a statutory bad faith claim against an insurer, and whether proceedings or discovery on that claim should be stayed depends on the particular circumstances and demonstrated prejudice.

Gunn v. Automobile Insurance Co. of Hartford · filed 2009-04-15

Thus, as the trial court makes clear, an analysis of a motion to stay a bad faith claim depends on the specific circumstances and allegations of the particular litigation at hand.

Section 8371 allows an insured to recover interest, punitive damages, and costs and attorney fees when the insurer acted in bad faith, which requires proof that the insurer lacked a reasonable basis and knowingly or recklessly disregarded that lack.

Morrison v. Wells Fargo Bank, N.A. · filed 2010-05-10

“Bad faith” is “ ‘any frivolous or unfounded refusal to pay proceeds of a policy.’ ” ... “Ultimately, in order to recover on a bad faith claim, the insured must prove: (l)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.” ... The insured must proved bad faith by clear and convincing evidence. ... That claim necessarily fails in light of our conclusion that Stewart Title’s obligations under the policy ended once the mortgage was paid in full. Accordingly, Stewart Title is entitled to summary judgment as to Wells Fargo’s bad faith claim.

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

Donegal Mutual Insurance v. Stroker · filed 2010-08-02

To establish bad faith under section 8371, the Superior Court has utilized a two-part test: “(1) the insurer lacked a reasonable basis for denying coverage and (2) the insurer knew or recklessly disregarded its lack of a reasonable basis.” Adamski, 738 A.2d at 1036. Both elements must be established by clear and convincing evidence.

Section 8371 allows only an insured to bring a statutory bad faith claim against an insurer.

Richard A. Papa & Associates P.C. v. Highmark Blue Shield · filed 2010-08-03

It is clear that only an insured may file a bad faith claim against the insurer under 42 Pa.C.S. §8371.

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

3039 B Street Associates, Inc. v. Lexington Insurance · filed 2010-08-27

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

Section 8371 creates an insurance bad faith cause of action requiring proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

Atiyeh v. National Fire Ins. Co. of Hartford · filed 2010-09-27

The Pennsylvania Legislature promulgated 42 Pa.C.S.A. § 8371 to create a cause of action in Pennsylvania insurance law for “bad faith.” ... To establish a claim of bad faith, a plaintiff must demonstrate that the insurer (1) lacked a reasonable basis for denying benefits and (2) knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 requires clear and convincing evidence that an insurer lacked a reasonable basis for denying policy benefits and knowingly or recklessly disregarded that lack, and it does not cover conduct unrelated to a policy benefit.

Nantieh v. First Keystone Risk Retention Group, Inc. · filed 2010-12-02

To establish insurance bad faith pursuant to 42 Pa.C.S.A. §8371, plaintiff must establish clear and convincing evidence that: 1) the insurer lacked a reasonable basis for denying benefits under a policy; and 2) the insurer knowingly or recklessly disregarded its lack of a reasonable basis in denying the claim. ... Plaintiff’s ability to drive has no connection whatsoever to any benefit or coverage provided by the policy. As a result, the alleged inability to drive cannot be a denial of any benefit provided under the policy. Thus, plaintiff’s allegations do not fall within the scope of §8371 of the bad faith statute and he cannot maintain an action on this basis.

A § 8371 bad faith claim fails when the insurer has a reasonable basis for its actions.

Amica Mutual Insurance v. Fogel · filed 2011-09-08

Thus, an insurer may defeat a claim of bad faith by showing that it had a reasonable basis for its actions. ... Although we part with the District Court on its conclusion that New Jersey law applied, we believe that if reasonable judges could reach that conclusion, as the Magistrate Judge and District Judge did in this case, the conduct alleged simply does not amount to bad faith. ... Thus, we affirm the District Court’s grant of summary judgment for Amica on the Fogels’ counterclaim alleging bad faith.

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

Heebner v. NATIONWIDE INS. ENTERPRISE · filed 2011-09-28

Pennsylvania’s bad faith statute provides that “if the court finds that the insurer has acted in bad faith toward the insured,” then the court may award interest, punitive damages, and attorney fees against the insurer. 42 Pa.C.S. § 8371. In order to make out a bad faith claim, a plaintiff must show that: (1) the defendant lacked a reasonable basis for denying benefits under the policy; and (2) the defendant knew of or recklessly disregarded its lack of reasonable basis in denying the claim. UPMC Health Sys. v. Metro. Life Ins. Co., 391 F.3d 497, 505 (3d Cir.2004). These elements must be proven by clear and convincing evidence. Polselli v. Nationwide Mut. Ins. Co., 126 F.3d 524, 532 (3d Cir.1997). ... Although we disagree with Nationwide and conclude that delay damages are covered, we are unable to agree with Plaintiff that Nationwide’s interpretation of the policy is so unreasonable that it amounts to bad faith. It is notable that neither party has cited to a case directly on point regarding whether delay damages are covered under the policy at issue. Thus, even when viewed in the light most favorable to Plaintiff, we conclude that Plaintiffs allegations of bad faith are not “facially plausible.” Therefore, we will dismiss Count II — Bad Faith.

Section 8371 does not treat an insurer’s justified investigation of a claim as statutory bad faith.

Portside Investors, L.P. v. Northern Insurance · filed 2011-11-23

As the Presentment, described supra, gave reason to believe that Pier 34’s collapse resulted from something other than “hidden decay,” Northern’s decision to insist on a statement from Asbell as to what he knew prior to collapse was not an exercise in statutory bad faith.

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

Seto v. State Farm Insurance · filed 2012-01-11

Pennsylvania case law is clear that a party which seeks to prove a bad faith claim must establish by clear and convincing evidence that the insurance company acted in bad faith without a reasonable basis for denying the claim, and that it knowingly or recklessly disregarded its lack of a reasonable basis to do so.

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 a reasonable basis.

Hamm v. Allstate Property & Casualty Insurance · filed 2012-11-07

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 allows recovery when an insurer lacks a reasonable basis for denying benefits and knowingly or recklessly disregards that lack of a reasonable basis.

Albert v. Erie Insurance Exchange · filed 2013-03-20

“To 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.”

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

Pennsylvania National Mutual Casualty Insurance v. Johnson · filed 2007-01-16

The Pennsylvania Bad Faith Statute, 42 Pa.C.S. §8371 provides that, where an insurer has acted in bad faith, the insured may be awarded punitive damages, interest at the prime rate plus 3 percent and court costs and attorney fees against the insurer. Bad faith exists where the insurer did not have a reasonable basis for denying benefits under the policy and where the insurer knew of, or recklessly disregarded, its lack of reasonable basis in denying coverage.

Section 8371 does not provide relief for an insured's claim that an insurer used unfair or deceptive practices to solicit the purchase of an insurance policy.

Toy v. Metropolitan Life Insurance · filed 2007-07-18

Thus, when § 8371, which provides a remedy in an action "arising under an insurance policy" as to a claim an insured has made of his insurer, is read with this meaning of bad faith in mind, we can only conclude on the question before us, that the words of the statute are clear and explicit, and that the Legislature intended not to give relief under the bad faith statute to an insured who alleges that his insurer engaged in unfair or deceptive practices in soliciting the purchase a policy. 42 Pa.C.S. § 8371.

Section 8371 provides a remedy when an insurer acts in bad faith and permits interest, punitive damages, and costs and attorney fees.

Johnson v. Progressive Insurance Co. · filed 2009-12-28

While the statute itself does not include a definition of bad faith, this Court has had occasion to interpret that term. In Condio v. Erie Insurance Exchange, 899 A.2d 1136, 1142 (Pa.Super.2006), we observed that bad faith is present if “the insurer did not have a reasonable basis for denying benefits under the policy and ... the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.” Id. (quoting O’Donnell v. Allstate Insurance Co., 734 A.2d 901, 906 (Pa.Super.1999)). “Bad faith conduct also includes ‘lack of good faith investigation into facts, and failure to communicate with the claimant.’ ” Condio, supra at 1142 (quoting in part Romano v. Nationwide Mutual Fire Insurance Co., 435 Pa.Super. 545, 646 A.2d 1228, 1232 (1994)). Bad faith must be established by clear and convincing evidence. Condio, supra.

Section 8371 allows bad faith liability against insurers, but the HMO Act insulates HMOs from potential liability under it.

Nordi v. Keystone Health Plan West Inc. · filed 2010-01-22

Because Barber does not overrule DiGregorio, we hold HMO Act § 1560 insulates Keystone from potential § 8371 liability.

Section 8371 provides a tort remedy for insurer bad faith when the insurer lacks a reasonable basis for denying benefits and knowingly or recklessly disregards that lack.

Johnson v. State Farm Life Insurance · filed 2010-02-08

To the contrary, bad faith under § 8371, will be found where the insurer did not have a reasonable basis for denying benefits under the policy and the insurer knew of or recklessly disregarded its lack of reasonable basis for denying the claim. ... As such, Johnson is unable to establish bad faith and the claim is properly dismissed.

Section 8371 permits an insured to pursue a bad faith claim when an insurer abuses the PRO process.

Hickey v. Allstate Property and Cas. and Ins. Co. · filed 2010-06-25

Drawing all reasonable inferences and viewing them in the light most favorable to the plaintiff, the Court finds that Plaintiff has alleged an abuse of the PRO process, which states a claim under section 8371 sufficient to permit discovery.

Section 8371 permits bad faith claims against insurers and does not apply to sureties.

Reginella Construction Co. v. Travelers Casualty & Surety Co. of America · filed 2013-05-31

Similarly, although section 8371 is a remedial statute, it applies only to insurers.

Section 8371 requires a plaintiff to prove bad faith by clear and convincing evidence.

Smith v. Allstate Insurance · filed 2012-10-24

For a plaintiff to succeed on a bad faith claim pursuant to 42 Pa.C.S. § 8371, bad faith “must be proven by clear and convincing evidence and not merely insinuated.”

Section 8371 allows an insured to recover punitive damages when the insurer acts in bad faith, shown by a lack of reasonable basis for denying benefits and knowing or reckless disregard of that lack.

Gallatin Fuels, Inc. v. Westchester Fire Insurance · filed 2007-08-09

Gallatin’s claim for bad faith is premised on section 8371 of the Pennsylvania code, which provides that “[i]n an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may . . . [a]ward punitive damages against the insurer . . . .” 42 Pa. Cons. Stat. Ann. § 8371. As we have explained, “[b]ad faith is a frivolous or unfounded refusal to pay, lack of investigation into the facts, or a failure to communicate with the insured.” Frog, Switch & Mfg. Co., Inc. v. Travelers Ins. Co., 193 F.3d 742, 751 n.9 (3d Cir. 1999). In addition, Pennsylvania courts have explained that in order to make out a statutory cause of action for bad faith in the denial of a claim, a plaintiff must establish “(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.” Booze v. Allstate Ins. Co., 750 A.2d 877, 880 (Pa. Super. Ct. 2000) (citing Terletsky v. Prudential Prop. & Cas. Ins. Co., 649 A.2d 680, 688 (Pa. Super. Ct. 1994), appeal denied, 659 A.2d 560 (Pa. 1995)).

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 a reasonable basis.

Rhodes v. USAA Casualty Insurance · filed 2013-07-18

Pennsylvania courts use a two-part test in considering bad faith claims under section 8371. Both elements of the test must be proved by clear and convincing evidence. An insured must show (1) the insurer lacked a reasonable bases for denying benefits under the policy; and, (2) the insurer knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 treats extreme insurer delay as potentially constituting bad faith.

Davis v. Fidelity National Insurance · filed 2013-08-15

This court concludes that such an extreme delay can certainly constitute bad faith under 42 Pa. C.S. §8371.

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

Brogan v. Rosenn, Jenkins & Greenwald · filed 2014-01-31

To succeed with a statutory bad faith claim, the insured must establish that: (1) the insurer did not have a reasonable basis for denying benefits under the policy; and (2) the insurer knew of or recklessly disregarded its lack of a reasonable basis in denying the claim. ... Bad faith must be established by clear and convincing evidence.

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

Sharp v. Travelers Personal Security Insurance · filed 2014-03-07

In contrast, in order to establish that an insurer “acted in bad faith toward the insured” in contravention of 42 Pa.C.S.A. § 8371, an insured must not only show, by clear and convincing evidence, that “the insurer did not have a reasonable basis for denying benefits under the policy,” but must further prove “that the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.” Grossi v. Travelers Personal Ins. Co., 79 A.3d 1141, 1148 (Pa. Super. 2013) (citing Terletsky v. Prudential Property and Cas. Ins. Co., 427 Pa. Super. 108, 125, 649 A.2d 680, 688 (1994), app. denied, 540 Pa. 641, 659 A.2d 560 (1995)).

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

Rowe v. Nationwide Insurance · filed 2014-03-20

To establish a bad faith claim under the statute, “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 of or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 applies to the handling of underinsured motorist claims.

Comrie v. Atlantic States Insurance · filed 2014-05-29

The bad faith statute extends to the handling of UIM claims, despite their similarity to third party claims.” Condio, supra at 1142.

Section 8371 imposes a statutory duty of good faith on an insurer performing obligations under an insurance policy.

Bruno, D., Aplts. v. Erie Insurance · filed 2014-12-15

It is not, since the duty at issue in that claim is the statutorily created obligation of Erie to have acted in good faith with respect to payment of the Brunos’ first party claims for property damage under their insurance policy. See Toy v. Metropolitan Life Ins., 928 A.2d 186 (Pa. 2007) (explaining that 42 Pa.C.S.A. § 8371 provides a remedy for an insurers’ breach of duty to act in good faith when performing obligations under an insurance policy which includes, inter alia, paying a first party claim under the policy); Ash, supra, 932 A.2d at 885 (recognizing that legislature, through enactment of Section 8371, “formally impos[ed] a duty of good faith on insurers”).

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

Rhodes, W. v. USAA Casualty Insurance · filed 2014-12-16

. . . [Our caselaw holds that,] to succeed on a claim under section 8371, the insured must show that “the insurer did not have a reasonable basis for denying benefits under the policy and that the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.”

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

Fleeger v. United Services Automobile Ass'n · filed 2014-12-29

The plaintiffs have failed to produce evidence to demonstrate that the defendant acted in bad faith by denying their claim for insurance coverage concerning the damage caused to the residence at 3207 Ellwood Road, New Castle, Lawrence County, Pennsylvania. If the plaintiffs’ bad faith claim is permitted to survive summary judgment based upon the current record that would provide a basis for any insured to file a bad faith claim based upon every denial of insurance coverage, which is not the intent of 42 Pa.C.S.A. § 8371. Therefore, the court grants the defendant’s cross partial motion for summary judgment in regard to the plaintiffs’ claim for bad faith pursuant to 42 Pa.C.S.A. § 8371 and that claim is dismissed.

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.

Mohney, T. v. American General · filed 2015-03-20

To succeed in a bad faith claim, the insured must present clear and convincing evidence to satisfy a two part test: (1) the insurer did not have a reasonable basis for denying benefits under the policy, and (2) the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 permits relief when an insurer acts in bad faith, which requires clear and convincing proof that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

Mohney v. American General Life Insurance · filed 2015-05-08

To succeed in a bad faith claim, the insured must present clear and convincing evidence to satisfy a two part test: (1) the insurer did not have a reasonable basis for denying benefits under the policy, and (2) the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.” 2 O'Donnell, 734 A.2d at 906. Bad faith claims are fact specific and depend on the conduct of the insurer vis à vis the insured.

Section 8371 permits an insured to recover when an insurer denies benefits without a reasonable basis and knowingly or recklessly disregards that lack of basis.

Ridolfi v. State Farm Mutual Automobile Insurance · filed 2015-11-19

Therefore, a plaintiff must “show [1] that the defendant did not have a reasonable basis for denying benefits under the policy and [2] that defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.” UPMC Health Sys. v. Metro. Life Ins. Co., 391 F.3d 497, 505 (3d Cir.2004) (quoting Terletsky v. Prudential Prop. and Cas. Ins. Co., 437 Pa.Super. 108, 649 A.2d 680, 688 (1994)).

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

Rancosky v. Washington National Insurance · filed 2015-12-16

The Pennsylvania legislature did not provide a definition of bad faith, as that term is used in section 8371, nor did it set forth the manner in which an insured must prove bad faith. While our Supreme Court has not yet addressed these issues, this Court has ruled that, to succeed on a bad faith claim, the insured must present clear and convincing evidence to satisfy a two part test: (1) the insurer did not have a reasonable basis for denying benefits under the policy, and (2) the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim.

Section 8371 permits a trial court to award damages for insurer bad faith when the record supports that determination.

Mangan, J. v. Safe Auto · filed 2015-12-23

We agree with the trial court’s rationale, which is supported by the record, and affirm on this basis in concluding that the trial court properly exercised its discretion in imposing bad faith damages.

Section 8371 allows an insured to sue an insurer for bad faith in handling an insurance claim, including failing to pay, make a reasonable settlement offer, investigate properly, or consider relevant documentation.

Kelly v. Progressive Advanced Insurance · filed 2016-02-04

The Kellys allege that Progressive failed to pay their claims, make a reasonable settlement offer, investigate their claims properly, and consider medical and other documentation. These allegations suffice to state a claim under § 8371.

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

Shaffer v. State Farm Mutual Automobile Insurance · filed 2016-03-10

A plaintiff may prevail on a claim of bad faith under § 8371 by presenting “clear and convincing” evidence that the defendant insurance company “did not have a reasonable basis for denying benefits under the policy and that [the] defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 does not identify specific acts that alone establish actionable bad faith.

West Chester University Foundation v. MetLife Insurance Co. · filed 2017-04-13

This Court also rejects Defendant’s argument that Pennsylvania case law requires dismissal of Plaintiffs bad faith claim. ... Section 8371 does not itself identify the specific acts that would establish actionable bad faith toward the insured.

Section 8371 allows an insured to recover for bad faith when the insurer lacked a reasonable basis for denying benefits and knowingly or recklessly disregarded that lack of a reasonable basis.

Lomma v. Ohio Nat'l Life Assurance Corp. · filed 2017-09-06

"To establish a bad-faith claim, the beneficiary must prove, by clear and convincing evidence, that the insurer did not have a reasonable basis for denying benefits under the policy and that the insurer knew of or recklessly disregarded its lack of reasonable basis in denying the claim."

Section 8371 requires a bad faith insurance claimant to prove by 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.

Rancosky v. Washington National Ins. Co., Aplt. · filed 2017-09-28

In summary, we hold that, 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 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.

Smerdon v. GEICO Cas. Co. · filed 2018-09-21

To prevail on her claim for statutory bad faith under 42 Pa.C.S.A. § 8371, a 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."

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

JAVIE v. MASSACHUSETTS CASUALTY INSURANCE COMPANY · filed 2019-08-08

In order to recover under Section 8371, a 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.” ... Thus, because five years of successive monthly payments had seemingly elapsed and Plaintiff had since secured any gainful employment, MC had a reasonable basis to terminate benefits under the terms of the Policy. ... The Court therefore dismisses Plaintiff's bad faith claim (Count III) without prejudice.

Section 8371 requires an insurer’s bad faith to be supported by clear and convincing evidence.

Davis v. Fidelity National Insurance · filed 2014-03-28(a)

We find no error was made in our determination of defendants’bad faith pursuant to 42 Pa.C.S. § 8371. Support for defendants’ bad faith by clear and convincing evidence exists in the record in the form of correspondence between plaintiff-insureds and defendant-insurer; correspondence between defendants’ claims attorney and claim manager; testimony of witnesses of plaintiff and defendant; and in the form of admissions by defendant-insurer, as noted in our August 15, 2013 opinion at pp. 8-9.

Section 8371 requires an insured to prove by 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.

SYPHERD ENTERPRISES, INC. v. AUTO-OWNERS INSURANCE COMPANY · filed 2019-11-21

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 allows an insured to recover for insurer bad faith by proving with 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.

NGUYEN v. ALLSTATE INSURANCE COMPANY · filed 2020-02-14

Under Pennsylvania law, a plaintiff can only recover for bad faith of an insurer under 42 Pa.C.S. § 8371 if he or she shows, 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 provides insureds a statutory bad faith remedy, and a fifteen month settlement delay is not automatically a violation.

BERNSTEIN v. GEICO CASUALTY COMPANY · filed 2020-03-19

Plaintiffs’ principal argument–that the fifteen months Defendant took to make an offer of settlement shows it acted in bad faith–is not a per se violation of § 8371, and courts have found no bad faith in cases where insurers took the same length of time to evaluate a claim.

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

CHAMP v. USAA CASUALTY INSURANCE COMPANY · filed 2020-04-07

Here, Champ failed to provide sufficient factual allegations of USAA’s bad faith. Rather, he provided conclusory remarks in which the Court cannot deduce bad faith. Champ provides no facts in his bad faith claim, and incorporates the paragraphs from his breach of contract claim to support his bad faith claim. Nonetheless, these paragraphs are insufficient to survive dismissal. Champ failed to provide factual detail to support his conclusory allegations. In construing the complaint in a light most favorable to Champ, the Court cannot determine specific factual allegations from these paragraphs. ... Champ must describe, with specifics, how USAA acted in bad faith. Thus, Champ’s conclusory allegations are contrary to Third Circuit precedent. Accordingly, his bad faith claim is dismissed without prejudice to permit Champ to amend his complaint.

Section 8371 bad faith claims concerning first-party medical benefits may be preempted by the MVFRL.

BANKS v. ALLSTATE FIRE AND CASUALTY INSURANCE COMPANY · filed 2020-04-13

The court concludes that Plaintiffs’ bad faith claim is preempted by the MVFRL.

Section 8371 allows an insured to recover interest, punitive damages, court costs, and attorney’s fees when an insurer acts in bad faith.

LOWNDES v. TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA · filed 2020-04-17

Under Pennsylvania law, an insured plaintiff may recover interest, punitive damages, court costs, and attorney’s fees against an insurer if the insurer acts in bad faith. 42 Pa. C.S.A. § 8371. Absent a statutory definition of bad faith, courts have defined bad faith as a “‘frivolous or unfounded refusal to pay proceeds of a policy[, evidencing] 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.’”

Section 8371 authorizes interest, punitive damages, and costs and attorney fees for insurer bad faith, while policy benefits are recoverable through a breach of contract claim.

NELSON v. STATE FARM FIRE & CASUALTY COMPANY · filed 2020-06-03

While Nelson may bring both causes of action, Nelson’s demand to recover benefits under the statutory bad faith claim is redundant and impermissible. Pursuant to the caselaw discussed above, Nelson may seek compensatory damages by way of her breach of contract claim, and the specific damages authorized in 42 Pa.C.S.A. § 8371 by way of her statutory bad faith claim. Accordingly, the Court will grant State Farm’s Motion to Strike Nelson’s request that State Farm “be ordered to pay the value of the damage to Plaintiff’s home as provided for in its Policy.”

Section 8371 permits an insured to pursue a statutory bad faith claim by showing that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a reasonable basis.

CANFIELD v. AMICA MUTUAL INSURANCE CO. · filed 2020-10-02

For any statutory bad faith claim not preempted by the MVFRL to proceed to discovery, Canfield must allege facts that show: (1) Amica did not have a reasonable basis for denying benefits under her policy; and (2) Amica knew or recklessly disregarded its lack of a reasonable basis when it denied the claim.

Section 8371 creates an insurer bad faith cause of action and requires specific facts showing bad faith rather than conclusory allegations.

PIERCHALSKI v. FARMERS INSURANCE GROUP · filed 2020-10-09

The Pennsylvania bad faith statute creates a cause of action against an insurer for its bad faith in handling its insured’s claim. ... A plaintiff must plead specific facts as evidence of bad faith and cannot rely on conclusory statements. ... A plaintiff cannot merely say that an insurer acted unfairly, but instead must describe with specificity what was unfair.

Section 8371 extends bad faith claims to an insurer’s investigation and requires a diligent, accurate, and sufficiently thorough investigation.

Myers v. Geico Casualty Co · filed 2020-12-08

Claims for bad faith under § 8371 extend to an insurer’s investigation. ... Good faith in this context requires that an insurance determination be “made diligently and accurately, pursuant to a good faith investigation into the facts” that is “sufficiently thorough to provide [the insurer] with a reasonable foundation for its actions.”

A claim under Section 8371 is subject to a two-year statute of limitations.

Smith, VMD, PhD v. Pruco Life Insurance Company · filed 2021-01-07

If Plaintiffs are pleading bad faith under the relevant Pennsylvania statute, 42 Pa.C.S. § 8371, a two-year statute of limitation applies. Ash v. Cont'l Ins. Co., 593 Pa. 523, 536 (2007).

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

Sartain, D. v. United Services Automobile · filed 2021-02-04

In order to prevail under the bad faith statute, 42 Pa.C.S.A. § 8371,3 “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.”

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 basis.

ELANSARI v. THE FIRST LIBERTY INSURANCE CORPORATION · filed 2021-05-06

Pennsylvania law defines bad faith as “a frivolous or unfounded refusal to pay, lack of investigation into the facts, or a failure to communicate with the insured.” Frog, Switch & Mfg. Co. v. Travelers Ins. Co., 193 F.3d 742, 751 n9 (3d Cir. 1999). To state a bad faith claim under the statute, a plaintiff must show “(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. Rancosky v. Wash Nat’l Ins. Co., 170 A.3d 364, 365 (Pa. 2017) (adopting two-part test articulated in Terletsky v. Prudential Property & Cas. Ins. Co., 649 A.2d 680 (Pa. Super. 1994)).

Section 8371 requires an insurance bad faith claim to satisfy a two-part test and include factual support beyond legal conclusions.

VELAZQUEZ v. PROGRESSIVE AMERICAN INSURANCE COMPANY · filed 2020-01-21

Courts use a two-part test to determine whether an insurer acted in bad faith under § 8371. ... First, the insurance company must lack “a reasonable basis for denying benefits under the policy.” ... Second, the insurer must have either knowingly or “recklessly disregarded its lack of reasonable basis in denying the claim.” ... Of course, a plaintiff asserting a bad faith action under § 8371 must go beyond merely pleading legal conclusions unsupported by facts.

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

DWYER v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2020-08-13

Pennsylvania law provides that “[i]n an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may” award interest on the claim, punitive damages, and/or costs/attorney fees against the insurer. 42 Pa. C.S.A. § 8371. The term “bad faith” includes “‘any frivolous or unfounded refusal to pay proceeds of a policy.’” Keefe v. Prudential Prop. and Cas. Ins. Co., 203 F.3d 218, 225 (3d Cir. 2000) (citation omitted)). To recover on such a claim, the 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.” Id. (citations omitted). The plaintiff must prove both elements by “clear and convincing evidence.” Id. at 227 (citations omitted); see also Polselli v. Nationwide Mut. Fire Ins. Co., 23 F.3d 747, 752 (3d Cir. 1994) (the “clear and convincing” standard requires a district court to “examine the evidence to ascertain whether it is so ‘clear, direct, weighty and convincing’ so as to enable the court to make its decision with a ‘clear conviction.’” (citation omitted)).

Section 8371 provides a remedy when an insurer lacks a reasonable basis for its conduct and knowingly or recklessly disregards that lack.

BOGATS v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY · filed 2020-11-30

Actionable bad faith encompasses behavior beyond the denial of a claim without a reasonable basis and can extend to an insurer's investigation of a claim. ... To defeat a claim of bad faith, an insurer must only demonstrate that it had a reasonable basis for its decision or course of action. ... Consequently, defendant is entitled to summary judgment on plaintiffs' bad faith insurance practices claim at count two.

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.

Goldsmith v. Nationwide Insurance Company · filed 2023-11-02

A bad faith claim under 42 Pa.C.S. §8371 requires the plaintiff to 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 of or recklessly disregarded its lack of reasonable basis in denying the claim.

Section 8371 requires a bad faith claimant to plead sufficient facts showing how the insurer acted unreasonably and in bad faith.

Feingold, A. v. McCormick & Priore · filed 2020-08-14

Additionally, regarding the bad faith claim, our review of the record leads us to agree with McCormick and Erie’s contention that the complaint does not include sufficient factual averments regarding how Erie acted unreasonably and in bad faith.

Section 8371 bad faith claims must allege specific facts about the insurer’s conduct; general allegations of wrongful denial or poor claim handling are insufficient.

MORAVIA MOTORCYCLE, INC. v. ALLSTATE INSURANCE CO. · filed 2022-03-03

As Allstate argues, a bad faith claim must “describe the who, what, where, when and how the alleged bad faith conduct occurred.” ... These allegations are insufficient to support a claim of bad faith.

A Section 8371 bad faith claim requires specific factual allegations; conclusory assertions and an unexplained refusal to pay policy limits are insufficient.

HOUSTON v. GEICO ADVANTAGE INSURANCE COMPANY · filed 2022-07-20

Such factual allegations lack the specificity required to state a cognizable bad faith claim.

Section 8371 allows a bad faith claim to survive dismissal when the insured alleges years without an insurer investigation followed by a summary denial; whether the delay was bad faith may require discovery.

McMEEKIN v. ALLSTATE INSURANCE COMPANY · filed 2023-12-14

At this time, it is simply unclear what resulted in the four-year delay described in Plaintiff’s Complaint, and the Court thus cannot determine whether the delay constitutes bad faith. Plaintiff avers that Allstate conducted no investigation of its own for a period of years, and then simply relied on information submitted by Plaintiff to deny Plaintiff’s claim. The Court believes that this issue is more appropriate for consideration following discovery in this matter, and Allstate’s Motion to Dismiss will be denied as to Count II.

Section 8371 requires a claimant to plead facts showing that the insurer lacked a reasonable basis to deny benefits and knew or recklessly disregarded that lack of basis.

BARBOR v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2024-08-06

Moreover, Plaintiffs have not pled facts showing that Defendant lacked a reasonable basis for denying benefits or knowingly disregarded its lack of a reasonable basis, as required by statute.

Section 8371 permits an insured to recover specified damages for insurer bad faith when the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack.

ULTIMATE HEARING SOLUTIONS II, LLC v. HARTFORD UNDERWRITERS INSURANCE COMPANY · filed 2021-01-14

The plaintiff must demonstrate that (1) “the insurer did not have a reasonable basis for denying benefits under the policy;” and (2) “the insurer knew or recklessly disregarded its lack of reasonable basis in denying the claim.”

Section 8371 permits recovery when an insurer unreasonably delays handling an insurance claim without a reasonable basis and knowingly or recklessly disregards that lack of basis.

DESALIS v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2021-05-05

To succeed on a statutory bad faith claim premised on an insurer’s delay, the plaintiff must establish that “the delay is attributable to the defendant, that the defendant had no reasonable basis for the actions it undertook which resulted in the delay, and that the defendant knew or recklessly disregarded the fact that it had no reasonable basis to deny payment.”

A Section 8371 bad faith claim is unripe when the underlying insurance contract claim has not accrued.

MGM Enterprises Inc. v. Rockingham Insurance Company · filed 2022-08-11

As discussed, supra, because no cause of action has yet accrued for breach of contract of the insurance agreement, Plaintiff’s claim for bad faith under 42 Pa.C.S. § 8371 is also unripe.

A proposed § 8371 bad faith claim based only on broad conclusory allegations fails to state a claim, making amendment futile.

ROBINSON v. GEICO GENERAL INSURANCE COMPANY · filed 2022-03-04

The proposed Amended Complaint, attached to the Motion for Leave to Amend the Complaint contains only broad conclusory allegations related to the bad faith claim.1 See generally ECF No. 14 Exhibit B. Accordingly, this Court finds that the Complaint, as amended, fails to state a claim upon which relief could be granted, and that thus the Motion for Leave to Amend the Complaint is futile and warrants denial.

A Section 8371 bad faith claim requires specific factual allegations; conclusory statements do not suffice.

YAUGER v. MID-CENTURY INSURANCE COMPANY · filed 2024-02-12

Here, nearly all of Plaintiffs’ allegations in the complaint are conclusory statements, and thus the Court must dismiss the claim as lacking sufficiently specific factual allegations.

A conclusory allegation that an insured disagreed with the insurer’s offered payment amount does not state a bad faith claim under § 8371.

CW KEARSE LLC v. CUMBERLAND MUTUAL FIRE INSURANCE COMPANY · filed 2024-05-13

Thus, like in Carr, Forsythia’s bad faith claim does not survive based on the conclusory allegation that Cumberland Mutual acted in bad faith when it offered an amount of payment with which Forsythia did not agree.

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.

METZ v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2024-10-29

To prove bad faith under 42 Pa. C.S.A. § 8371 plaintiffs must demonstrate, by clear and convincing evidence, that an insurer, (1) lacked a reasonable basis for denying benefits, and (2) knew or recklessly disregarded its lack of a reasonable basis.

Section 8371 allows a bad faith claim to proceed when allegations plausibly show that an insurer knew or recklessly disregarded its failure to investigate a claim in good faith.

Essis v. United Services Automobile Association · filed 2024-12-16

Given that Defendant initially denied Plaintiffs’ claim, later rescinded that decision, and then acknowledged both the complicated nature of Mr. Essis’s injuries and the fact that it may need an expert’s input in evaluating Plaintiffs’ claim, the Court can plausibly infer from the factual allegations in the complaint that Defendant knew or recklessly disregarded its lack of a good faith investigation.

A disagreement over the value of an insurance claim, without specific evidence of bad faith, does not establish bad faith under § 8371.

Kalili, P. v. State Farm Fire and Casualty · filed 2024-12-26

We see nothing in this case that indicates anything more than a normal disagreement between the parties over the value of Kalili’s claim. That is not sufficient to show bad faith.

Section 8371 bad faith claims require specific facts supporting both a lack of a reasonable basis for denying benefits and the insurer’s knowledge or reckless disregard of that lack.

Carolan v. PROGRESSIVE ADVANCED INSURANCE COMPANY · filed 2025-03-11

Here, in viewing the allegations in the Complaint in the light most favorable to Plaintiffs, although they are numerous, they are conclusory in that they fail to cite specific facts to support the two elements of a bad faith claim, which are, as noted above, (1) whether the insurer lacked a reasonable basis for denying benefits under the insured’s policy, and (2) whether the insurer knew or recklessly disregarded the lack of a reasonable basis.

Section 8371 requires clear and convincing evidence that the insurer denied benefits without a reasonable basis and knew or recklessly disregarded that lack of a reasonable basis.

GLUNK v. THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK · filed 2025-03-31

Under 42 Pa. C.S.A. § 8371, a bad faith claim requires clear and convincing evidence that the insurer denied benefits without a reasonable basis and knew or recklessly disregarded its lack of a reasonable basis when it denied the benefits.

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

THE CINCINNATI CASUALTY COMPANY v. WELSH · filed 2025-05-20

To 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 the defendant knew or recklessly disregarded its lack of reasonable basis in denying the claim.

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.

TATUM v. PROGRESSIVE INSURANCE CO. · filed 2025-06-23

In order to prevail on a Section 8371 claim, 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 of or recklessly disregarded its lack of a reasonable basis” when it denied coverage.

A § 8371 bad faith claim can survive dismissal when allegations of inadequate investigation, failure to respond, and a low offer together make bad faith plausible.

Dasch v. USAA Casualty Insurance Company · filed 2025-08-21

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

Section 8371 requires specific allegations supporting a reasonable inference that the insurer lacked a reasonable basis for denying a claim and knew or recklessly disregarded that lack of a reasonable basis.

CAMP v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2025-09-11

Without more specific allegations outlining how State Farm “failed to properly investigate the claim presented by Plaintiffs” and “improperly refused coverage without reason and in the face of overwhelming evidence that it was a covered loss,” the Court cannot reasonably infer from the Complaint that State Farm lacked a reasonable basis for denying Plaintiffs’ claim and knew or recklessly disregarded its lack of reasonable basis for denying Plaintiffs’ claim.

A § 8371 bad faith claim must plead specific facts supporting an inference that the insurer lacked a reasonable basis for denying the claim and knew or recklessly disregarded that lack of basis.

Weir · filed 2025-11-24

In the absence of actual specific factual allegations regarding how Progressive conduct amounted to bad faith, the Court cannot reasonably infer from the Complaint that Progressive lacked a reasonable basis for denying Plaintiffs claim and knew or recklessly disregarded its lack of reasonable basis in denying Plaintiff's claim.

A § 8371 bad faith complaint must allege facts identifying the denied insurance claim and explaining why the denial lacked a reasonable basis; reciting the elements is insufficient.

SHURELDS · filed 2026-02-11

Additionally, Shurelds alleges that Safeco lacked a reasonable basis for denying his claims but does not specify the claim Safeco denied or why it was unreasonable. Id. As a result, he has only provided a threadbare recital of the elements of a § 8371 claim. Because threadbare factual support cannot survive a motion to dismiss, Shurelds’ bad faith insurance practices claim is dismissed.

A violation of the UIPA or unfair claims settlement regulations does not, by itself, establish bad faith under § 8371.

HIZOUNI · filed 2026-03-10

Thus, a violation of the UIPA or the regulations “is not a per se violation of the bad faith standard[,]” i.e., the two-prong standard from Terletsky.

Section 8371 does not impose bad faith liability solely because an insurer’s reason for denying a claim proves legally incorrect.

Employers Mutual Casualty Co. v. Loos Ex Rel. Loos · filed 2007-02-28

Under Pennsylvania law, the presence or absence of bad faith does not turn on the legal correctness of the basis for an insurer’s denial of an insured’s claim.

An insurer’s reasonable reliance on an engineer’s findings can defeat a § 8371 bad faith claim even when coverage remains disputed.

El Bor Corp. v. Fireman's Fund Insurance · filed 2011-05-06

Finally, it cannot be said that Defendant’s reliance on the policy exclusions cited was unreasonable. ... These findings, which were cited in the denial letter, provide reasonable grounds to deny benefits.

Section 8371 requires clear and convincing evidence of bad faith; an insurer’s reasonable basis for denying coverage defeats the claim.

Post v. St Paul Travelers Ins Co · filed 2012-07-31

The District Court correctly granted summary judgment in favor of Travelers on Post’s insurance bad faith claim brought pursuant to 42 Pa. Cons. Stat. § 8371. The sanctions exclusion in the Policy provided Travelers a reasonable basis for declining to provide a defense to Post, and there is nothing in the record—let alone clear and convincing evidence—indicating that Travelers’ purported mishandling of Post’s claim was motivated by a dishonest purpose or ill will.

Section 8371 does not impose bad faith liability when an insurer has a reasonable basis for denying coverage.

Kojsza v. Scottsdale Insurance · filed 2014-01-15

As such, the Court finds that Defendant had a reasonable basis for denying coverage when it relied on both Mr. Semcheski’s and the police report. Accordingly, the Court will grant summary judgment in favor of Defendant on Count II.

Section 8371 does not support a bad faith claim when the insurer had a reasonable basis for denying benefits.

Duda v. Standard Insurance Co · filed 2016-05-10

However, even assuming Count IV is not time-barred, it must fail on the merits. Obviously, if no reasonable jury would find that Duda’s inability to perform open surgeries, by itself, qualified him for “total disability” benefits, it necessarily follows that no reasonable jury would find that Lincoln lacked a reasonable basis for denying “total disability” benefits.

Section 8371 requires a bad faith claimant to show that the insurer lacked a reasonable basis for denying coverage; a properly applied policy exclusion provides such a basis.

Dougherty v. Allstate Property & Casualty Insurance Co. · filed 2017-03-06

Because we conclude that the maintenance exclusion was properly applied, Allstate by definition had a reasonable basis to deny Dougherty’s claim.

Section 8371 does not treat a thorough investigation of a questionable insurance claim as bad faith, even when the investigation delays payment.

3039 B Street Associates, Inc. v. Lexington Insurance · filed 2011-09-19

B Street‟s claim was highly questionable, and “Pennsylvania law provides that it is not bad faith to conduct a thorough investigation into a questionable claim.” Babayan, 430 F.3d at 138. For this reason, the District Court correctly concluded that B Street would be unable to show by clear and convincing evidence that Lexington acted in bad faith.

Section 8371 requires more than an insurer’s failure to immediately meet a demand for the policy limit to establish bad faith.

Smith v. State Farm Mutual Automobile Insurance · filed 2012-11-27

However, the failure to immediately accede to a demand for the policy limit cannot, without more, amount to bad faith.

Section 8371 requires clear and convincing proof of bad faith; a low settlement offer does not establish bad faith when uncertainty about damages makes the insurer’s valuation reasonable.

Lublin v. American Financial Group, Inc. · filed 2013-06-20

Defendant’s valuation of Plaintiffs injuries and eventual settlement offer are not prima facie evidence of bad faith. Given the particular ambiguity surrounding the Plaintiffs lost wages and earning capacity calculations, Defendant’s settlement negotiations and offer were not unreasonable. These facts therefore fail the clear and convincing evidence standard of proving bad faith.

Section 8371 bad faith claims fail when the insurer had a reasonable basis to deny coverage.

Sanko v. Allstate Ins. Co. · filed 2018-05-18

Therefore, where the insurance company had a reasonable basis for denying Plaintiff's claim, the bad faith claim necessarily fails.

Section 8371 does not support a bad faith claim when the insurer had a reasonable basis for denying coverage.

Gerow v. State Auto Prop. & Cas. Co. · filed 2018-10-11

Because Defendant did have a reasonable basis for denying coverage, Defendant could not have known or recklessly disregarded a lack of reasonable basis. Accordingly, Plaintiffs' bad faith claim fails.

Section 8371 requires a bad-faith claimant to prove by clear and convincing evidence that the insurer lacked a reasonable basis to investigate a claim before paying it.

MERRONE v. ALLSTATE VEHICLE AND PROPERTY INSURANCE COMPANY · filed 2019-10-21

Accordingly, because Plaintiff has not shown by clear and convincing evidence that Allstate lacked a reasonable basis to investigate the fire, her claim fails, and Allstate is entitled to judgment as a matter of law.

Section 8371 requires facts showing that the insurer lacked a reasonable basis for denying benefits; disagreement with its doctor’s assessment alone does not establish bad faith.

ELANSARI v. LIBERTY MUTUAL INSURANCE COMPANY · filed 2019-12-09

Accordingly, the facts plead in the Complaint, without more, fail to show Mr. Elansari’s insurer acted in bad faith when it denied his claim.

Section 8371 requires clear and convincing evidence that the insurer lacked a reasonable basis to deny benefits; a supported denial does not establish bad faith.

LY v. UNIVERSAL PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2021-05-07

Because Plaintiff has not shown by clear and convincing evidence that Defendant lacked a reasonable basis to deny the claim, Defendant is entitled to summary judgment in its favor on the bad faith claim.

A § 8371 bad faith claim fails when the insurer has a reasonable basis to deny coverage under an applicable policy exclusion.

JONES v. ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2021-08-04

But the claim falls outside coverage, and there is no basis on which to find bad faith.

Section 8371 bad-faith claims fail when clear policy terms give the insurer a reasonable basis to deny coverage.

BRANDYWINE VALLEY PREMIER HOSPITALITY GROUP v. FIREMANSS FUND INSURANCE COMPANY · filed 2023-08-08

To the contrary, as the Court concluded above, the clear and unambiguous terms of the policy serve as a reasonable basis for FFIC’s denial of Brandywine’s claim because Brandywine made no claim of direct physical damage or loss to its property.

Section 8371’s bad-faith inquiry excludes a medical report the insurer received only after settling the claim, because the insurer could not have considered it when making its offers.

Antonio v. Progressive Insurance Co · filed 2020-01-08

Because Progressive was not in possession of the report when it was evaluating Antonio’s claim, it could not have considered the report’s findings when making its settlement offers. Therefore, the report had no relevance to the issue of whether Progressive acted in bad faith. Accordingly, we see no abuse of discretion in the District Court’s decision to exclude the report.

Section 8371 does not support a bad faith claim based solely on a disagreement over the value of an underinsured motorist claim.

DIETZ v. LM GENERAL INSURANCE COMPANY · filed 2020-06-22

A disagreement over the amount of a UIM claim is not unusual, and the existence of such disagreement cannot by itself state a viable bad faith claim.

Section 8371 requires factual allegations beyond the duration of an insurer’s inspection to support a bad faith claim based on an inadequate investigation.

PALEK v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2020-08-26

Though the duration of the adjuster’s inspection might be relevant to a claim of bad faith, it does not itself demonstrate bad faith. Even accepting this allegation as true, plaintiffs did not plead sufficient facts to support a cognizable claim of bad faith for failure to conduct an adequate investigation.

Section 8371 does not impose bad faith liability for failing to investigate claims that the policy does not cover.

WESTMINSTER AMERICAN INSURANCE COMPANY v. Security National Insurance Company · filed 2021-08-16

Moreover, in the absence of coverage, SNIC cannot have acted in bad faith insofar as it failed to investigate the uncovered claims.

Section 8371 does not support a bad faith claim based on an insurer’s denial of coverage when the policy provides no coverage.

THREE RIVERS HYDROPONICS, LLC v. FLORISTS' MUTUAL INSURANCE COMPANY · filed 2021-12-29

The Court concludes that Defendant is entitled to judgment as a matter of law on the bad faith claim. First, where no coverage exists under an insurance policy, the insurer cannot be found to have acted in bad faith for having denied coverage.

A claim under § 8371 based on delayed payment needs facts supporting that the delay was unreasonable; a bare assertion that the insurer took too long is insufficient.

BOND v. GEICO · filed 2022-03-04

Mr. Bond offers no facts to support his assertion that Geico’s alleged delay in payment was unreasonable. He provides no timeline for when the accident occurred, when the claim was filed, when Geico offered him the insufficient amount(s), or Geico’s stated reasons for doing so. His bald assertion that Geico took too long is not enough.

Section 8371 does not require an insurer to search its records for a policy held by someone who did not report an accident merely because another insured reported the same accident.

GUERRIER v. STATE FARM · filed 2022-06-07

Mr. Guerrier cannot have reasonably expected State Farm to see a claim under the Rogers policy with State Farm and then search for policies potentially held by him. ... That is plainly not bad faith on the part of the insurer.

Section 8371 does not support a bad faith claim based on a few months of claim evaluation when the parties agreed to pause the investigation and the insurer maintained communication with the insureds.

Young v. State Farm Automobile Insurance Company · filed 2022-07-13

Plaintiffs have failed to establish either element of the Terletsky test, and accordingly, they have failed to state a claim actionable under 42 Pa. Cons. Stat. § 8371. ... Accordingly, because the parties maintained ongoing communication and mutually agreed to pause the investigation during pendency of the third-party claims, Plaintiffs fail to establish element one of the Terletsky test.

Section 8371 does not impose bad faith liability when an insurer reasonably interprets its policy and investigates sufficiently to support its coverage decision.

LECCESE v. ALLSTATE INSURANCE COMPANY · filed 2022-09-22

So long as an insurer adopts a reasonable construction of the policy and uses that construction to investigate the claim and to inform its coverage decision there will, generally, be no bad faith.

Section 8371 does not treat a low claim estimate as bad faith if the insurer has a reasonable basis for the estimate.

WASHINGTON STREET, LLC v. NATIONWIDE PROPERTY & CASUALTY INSURANCE COMPANY · filed 2022-11-18

An insurer’s estimate is not bad faith if it is low, as long as the insurer has a reasonable basis for the estimate.

Section 8371 covers bad faith in an insurer’s investigation of a claim, as well as unreasonable denial of a claim.

Foy v. Encompass Home and Auto Insurance Company · filed 2023-10-10

Actionable bad faith encompasses behavior beyond the denial of a claim without a reasonable basis, including an insurer’s investigation of a claim.

Section 8371 requires clear and convincing evidence that the insurer acted unreasonably and knew or recklessly disregarded that it lacked a reasonable basis for its decision.

Naftzinger v. State Farm Insurance Company · filed 2024-01-10

In its Motion for Partial Summary Judgment, Defendant provides sufficient evidence of the reasonableness of their estimates with respect to both the roof and mold damages, while Plaintiff lacks clear and convincing evidence that Defendant's conduct was unreasonable and knowing or reckless.

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 a reasonable basis.

Nelson v. State Farm Fire and Casualty Co · filed 2024-03-15

In Pennsylvania, to prevail on a claim of statutory bad faith under 42 Pa. Cons. Stat. § 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.” Rancosky v. Wash. Nat’l Ins. Co., 170 A.3d 364, 377 (Pa. 2017); see also Klinger v. State Farm Mut. Auto. Ins. Co., 115 F.3d 230, 233 (3d Cir. 1997). ... In short, no reasonable jury could conclude on this record that Nelson had clear and convincing evidence that State Farm had no reasonable basis for denying benefits under the policy.

Section 8371 requires a showing that the insurer lacked a reasonable basis for denying coverage; crediting its own expert over competing reports does not alone establish bad faith.

NEHME v. WESTFIELD INSURANCE COMPANY · filed 2024-06-26

Thus, there is no evidence that Defendant’s choice to credit their own expert illustrates the lack of a reasonable basis to deny Plaintiff’s claim.

Section 8371 does not impose bad faith liability when an insurer has a reasonable basis to deny benefits under the policy.

VASQUEZ v. NATIONWIDE PROPERTY & CASUALTY INSURANCE COMPANY · filed 2024-09-27

Thus, Nationwide had a reasonable basis to deny Plaintiffs’ claim for UIM benefits under the policy. Accordingly, Plaintiffs’ bad faith claim fails.

Section 8371 requires proof that the insurer lacked a reasonable basis for denying coverage; a claim fails when the insurer had a reasonable basis.

JACKSON v. SPINNAKER INSURANCE COMPANY · filed 2025-01-28

Here, Plaintiff’s bad faith claim cannot get past the first element – the absence of a reasonable basis for denying coverage; to the contrary, the record affirmatively demonstrates a highly reasonable basis for Defendant’s actions.

A Section 8371 bad faith claim fails at summary judgment when the plaintiff cannot raise a genuine dispute that the insurer lacked a reasonable basis to deny coverage.

Durkin v. State Farm Mutual Automobile Insurance Co · filed 2026-01-23

We agree with the District Court that Durkin has failed to offer evidence that creates a genuine dispute State Farm had no reasonable basis to deny coverage.

Section 8371 requires proof that the insurer lacked a reasonable basis for denying the claim; an objectively reasonable basis defeats a bad-faith claim.

Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company · filed 2026-01-28

The question under § 8371 is whether the denial lacked a reasonable basis.

Section 8371 permits a bad faith claim to proceed when a limited investigation and unexplained denial plausibly show that the insurer lacked a reasonable basis to deny benefits.

RISK v. LM GENERAL INSURANCE COMPANY · filed 2024-03-14

While Defendant is correct that there is no “contractual obligation or statutory provision requiring” an IME or taking plaintiffs’ statement under oath, failing to do either one and also failing to explain the basis for the denial both weigh in favor of a finding, under the first prong, that LM lacked a reasonable basis for denying benefits under the policyif borne out in discovery.

Section 8371 does not treat a 35-day investigation of a detailed underinsured motorist claim as bad faith when the insurer seeks relevant medical history before making an offer.

GARDNER v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY · filed 2025-09-03

As to any allegations of delay, I hold that thirty-five days is not an unreasonable amount of time for Defendant to investigate Plaintiff’s claims.

Section 8371 does not impose bad faith liability when an insurer has a reasonable basis to deny the claim.

Horowitz v. Federal Kemper Life Assurance Co. · filed 1995-06-07

Finally, we agree with the district court that the plaintiffs' bad faith claim must fail because under the circumstances, Federal Kemper had a reasonable basis to deny Mrs. Horowitz's claim and ample grounds for its allegations of fraud.

Section 8371 bad faith concerns an insurer’s denial of coverage without good reason.

Jung v. Nationwide Mutual Fire Insurance · filed 1997-01-10

It is clear, however, that the crux of a bad faith claim under § 8371 is the denial of coverage by an insurer when it has no good reason to do so.

Section 8371 requires an insurer to lack any reasonable basis for its conduct before it can be found to have acted in bad faith.

Livornese v. Medical Protective Co. · filed 2002-07-16

As a matter of law, if some reasonable basis did exist, that insurer cannot have acted in bad faith, under Section 8371.

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.

Cresswell v. Pennsylvania National Mutual Casualty Insurance · filed 2003-03-07

As we have found that Appellee USF & G did not have a duty to provide coverage to Appellants, we also conclude that it is impossible for Appellants to demonstrate that Appellee USF & G lacked a reasonable basis for denying Appellants coverage in the Ronco litigation. See Morrison v. Mountain Laurel Assurance Co., 748 A.2d 689 (Pa.Super.2000) (if there is no duty to provide coverage, failure to provide coverage cannot constitute bad faith); see also Booze v. Allstate Ins. Co., 750 A.2d 877, 880 (Pa.Super.2000) (a “bad faith” claim must demonstrate by clear and convincing evidence that: (1) insurer lacked a reasonable basis for denying benefits; and (2) insurer knew or recklessly disregarded its lack of a reasonable basis).

Section 8371 permits a bad faith claim to proceed when the insurer’s coverage position may give rise to bad faith, requiring further proceedings.

Livornese v. Medical Protective Co. · filed 2005-06-09

The District Court held in its July 16, 2002, Memorandum and Order that MPC had a reasonable basis for denying the coverage demanded by its insureds and that, where such a reasonable basis exists, there is no viable claim for bad faith. See 42 Pa. C.S.A. § 8371; see also Klinger v. State Farm Mut. Auto Ins. Co., 115 F.3d 230, 233 (3d Cir. 1997). ... Because our holding above – that MPC is liable for pre- and postjudgment interest – is not based on § 1302.702(j) but on the clear language of the insurance contract, pursuant to Pa. R. Civ. P. 238 (controlling prejudgment interest), 42 Pa. C.S.A. § 8101 (controlling postjudgment interest), and related case law, we conclude that there is a possibility of bad faith and of liability for delay damages. We will, therefore, reverse the District Court’s dismissal of this claim and remand it to the District Court for further proceedings.

Section 8371 discourages insurers from coercing or misleading insureds while preserving their right to investigate and litigate legitimate application misrepresentation.

Meczkowski v. State Farm Insurance Companies · filed 2006-09-13

“The (Pennsylvania Bad Faith) law is meant to dissuade an insurance company from using its economic power to coerce and mislead insureds; it does not purport to interfere with an insurance company’s right to investigate and litigate the legitimate issue of misrepresentation in an application.”

Section 8371 provides a statutory remedy for insurer bad faith, including bad faith in investigating a claim before refusing to pay policy proceeds.

Bombar v. West American Insurance Co. · filed 2007-07-26

Implicit in Hollock's holdings is the requirement that the insurer properly investigate claims prior to refusing to pay the proceeds of the policy to its insured. See Condio v. Erie Insurance Exchange, 899 A.2d 1136 (Pa.Super.2006) (holding that bad faith includes lack of good faith in investigating the facts of a complaint). Therefore, we conclude the trial court did not err.

Section 8371 permits a bad faith claim to proceed when an insurer's request for a medical examination is unreasonable, while a reasonable request warrants dismissal.

Williams v. Allstate Insurance · filed 2009-01-15

However, while Defendant would be entitled to a dismissal of the bad faith claim if its request for the medical examination was reasonable, the bad faith claim could theoretically proceed in the face of an unreasonable request for a medical examination. As the Court has already found an issue of fact as to the reasonableness of Defendant's request, we decline to dismiss the bad faith allegation.

Section 8371 provides relief for an insurer’s bad faith, with the inquiry focused on the insurer’s conduct and basis for denying benefits or refusing to promptly settle the claim.

Rhodes v. USAA Casualty Insurance · filed 2011-05-17

The focus of a bad faith claim is necessarily on the insurer’s conduct and its basis for denying benefits under the policy or refusing to promptly settle the claim.

Section 8371 imposes an ongoing duty on an insurer to reevaluate a denial when new information undermines its reasonable basis.

Webber v. Erie Insurance Exchange · filed 2013-11-14

Thus, under Condio, even if an insurer’s initial denial of coverage is reasonable, a subsequent failure to reevaluate the denial based on new information violates the insurer’s duty of good faith to its insured.

Section 8371 does not support a bad-faith claim when the insurer denies coverage that the policy does not provide.

Rogers, R. v. Allstate Property & Casualty Ins. · filed 2015-12-22

We agree with the trial court that there was no coverage in this case. Thus, we also agree that Allstate did not act in bad faith, negligently, fraudulently, or in derogation of the UTPCPL.

Section 8371 requires clear and convincing evidence of insurer bad faith, and a reasonable basis for denying coverage defeats the claim.

Lomma v. Ohio Nat'l Life Assurance Corp. · filed 2018-06-28

"Bad faith must be demonstrated by clear and convincing evidence, even on summary judgment." ... "A reasonable basis is all that is required to defeat a claim of bad faith." ... An insurer's denial of benefits based on a plausible interpretation of an ambiguous contract, standing alone, is not sufficient to support a finding of bad faith by the Defendants.

Section 8371 permits a bad faith claim based on delay when the insurer had no reasonable basis for the delay and knowingly or recklessly disregarded that unreasonableness.

SOLANO-SANCHEZ v. STATE FARM MUTUAL AUTO INSURANCE COMPANY · filed 2020-01-24

These allegations are sufficient to plead bad faith under 42 PA. CONS. STAT. § 8371 based on a theory of delay.

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

T.H.E. Insurance Company v. Fisher · filed 2021-08-19

Because there was a reasonable basis for determining that Coverage B applied to Davis and Spencer’s claims, Davis and Spencer’s bad faith claim under Section 8371 fails as a matter of law.