42 Pa. Cons. Stat. § 8371

Section 8371 bad faith claims fail when the insurer had a reasonable basis for denying coverage.

CHEMICAL EQUIPMENT LABS, INC. v. TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA · filed 2022-03-31

Because this Court has determined Plaintiff is not entitled to insurance coverage as a matter of law, Plaintiff’s claim for bad faith necessarily fails. Inasmuch as Defendant had a “reasonable basis” for denying coverage, Plaintiff’s motion for summary judgment on its bad faith claims must be denied.

Section 8371 does not impose bad faith liability for an investigation when a medical expert’s opinion gives the insurer a reasonable basis to contest a UIM claim’s value.

CHILDS v. PROGRESSIVE PREFERRED INSURANCE COMPANY · filed 2023-06-15

Dr. Jewell’s opinions establish a reasonable basis for Progressive to contest the value of Mr. Childs’s UIM claim.

Section 8371 does not support a bad faith claim based on denial of coverage when the policy gives the insurer a reasonable basis to deny it.

RICE ENTERPRISES, LLC v. RSUI INDEMNITY COMPANY · filed 2023-12-06

Here, given that Exclusions C.4 and C.7 of the Zenith policy apply to exclude coverage to Rice, Zenith’s denial of a defense and indemnification under its policy was reasonable. As such, Rice cannot maintain a statutory bad faith claim against Zenith for its refusal to defend and indemnify.

Section 8371 does not impose bad faith liability when an insurer has a valid reason under the policy to deny coverage.

MOORE v. USAA CASUALTY INSURANCE COMPANY · filed 2024-06-10

Plaintiff’s claim for insurance bad faith, 42 Pa. C.S. § 8371, fails for all the reasons previously discussed in the above analysis when the Court dismissed Plaintiff’s request for declaratory relief and claim for breach of contract. Plaintiff’s uninsured motorist loss was not a covered loss based on the Ride Share Exclusion included in the insurance Policy. Therefore, Defendant was not unreasonable and did not act in bad faith because it had a valid reason to deny uninsured motorist coverage.

Section 8371 does not treat an insurer’s change in its stated reason for denying coverage, by itself, as bad faith.

Schlumberger Technology Corporation v. First Mercury Insurance Co. · filed 2023-03-31

Changing the basis for denial alone does not constitute bad faith—much less prove it by clear and convincing evidence.

A low settlement offer or an offer below the insured’s UIM policy limits does not, by itself, constitute bad faith under § 8371.

MOODY v. STATE FARM AUTOMOBILE INSURANCE CO. · filed 2023-08-04

As regard settlement offers, again the case law is clear that an alleged “low ball” offer or an offer that falls below an insured’s UIM policy limits is alone not sufficient to constitute bad faith.

A § 8371 bad faith claim based on denial of coverage fails when the insurer’s refusal to provide coverage was appropriate.

BRANZINO, INC. v. SENECA INSURANCE COMPANY, INC. · filed 2024-02-06

As I have discussed, however, Seneca’s refusal to provide coverage was appropriate. Branzino’s bad faith claim thus fails.

An insurer’s reliance on its engineering reports can be a reasonable basis for denying a claim even when the insured submits a conflicting report.

LEE v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2025-07-18

The fact that there is a conflicting report by Plaintiff’s engineer does not make Defendant’s reliance on their engineer’s reports any less reasonable.

An insurer may rely on its own expert opinion when deciding a claim, even if the insured’s expert disagrees.

LAKESIDE EVANGELICAL CONGREGATIONAL CHURCH v. CHURCH MUTUAL INSURANCE COMPANY · filed 2025-03-03

Regardless of which, if either expert opinion is ultimately determined to be correct, for purposes a bad faith claim, CMIC is entitled to rely upon on its own expert opinion in relation to the decision it made. Under these circumstances and allegations, Lakeside’s Amended Complaint fails to support a bad faith claim.

A § 8371 bad-faith claim based on delay fails when the complaint shows an ongoing UIM investigation consistent with the information received and delays attributable to the insured or beyond the parties’ control.

Pipik v. State Farm Mutual Automobile Insurance Company · filed 2025-03-04

Given the totality of these circumstances, regarding allegations, concerning the reasonableness, of timing of the UIM investigation, the Complaint does not support that State Farm engaged in bad faith conduct with regard to Mr. Pipik’s UIM claim.

Section 8371 does not treat the length of an appraisal process alone as proof of unreasonable delay.

Belotti v. State Farm Fire and Casualty Company · filed 2025-03-25

A mere showing that an appraisal process consisted of a long period does not, in itself, constitute an unreasonable delay in an appraisal process.

Section 8371 requires more than a one- or two-month delay in resolving a UIM claim, standing alone, to support a bad faith claim.

PRESSLEY v. USAA · filed 2025-06-30

However, a one- or two-month delay in “investigat[ing] and pay[ing] [a] UIM settlement,” id. ¶ 21, is not, on its own, sufficient to sustain a bad faith claim.

Section 8371 does not treat an insurer’s discovery violation as bad faith without evidence that the violation was used to avoid paying a claim under the policy.

WV Realty Inc v. Northern Ins Co NY · filed 2003-06-27

We conclude that the discovery violation in this case fell into the “pure discovery violation” category as opposed to the “discovery violation as insurance bad faith” category. There is simply no evidence that Northern failed to disclose the bad faith cases in order to avoid paying plaintiffs’ business interruption claim.

Section 8371 covers litigation conduct used in bad faith to evade an insurer’s duty under a policy.

W v. Realty Inc. New Montage Manor, Inc. v. Northern Insurance Company of New York · filed 2003-06-27

This general proposition comes with the caveat that using litigation in a bad faith effort to evade a duty owed under a policy would be actionable under Section 8371.

Section 8371 does not treat an insurer’s introduction of and reliance on noncontradictory expert testimony as bad faith.

Homer v. Nationwide Mutual Insurance Co · filed 2018-02-27

Because the statements made by Dr. Petrick and Dr. Ferraro are not contradictory, Nationwide’s introduction of and reliance on their testimony cannot rise to the level of bad faith, even under Homer’s suggested legal standard.

Section 8371 permits a jury to determine bad faith allegations when a party properly demands a jury trial.

MacFarland v. United States Fidelity & Guarantee Co. · filed 1993-04-07

However, in Thomson, 1992 WL 210088, this court thoroughly analyzed the effects of § 8371 on the Seventh Amendment right to a jury trial and concluded that, upon proper demand, findings regarding bad faith allegations can be determined by a jury. We continue to adhere to that finding.

Section 8371 does not prevent a judgment creditor from using a garnishment proceeding to obtain an excess verdict from an insurer for bad faith.

Banks v. Chiffy · filed 1995-04-21

Although there appears no published appellate authority discussing the effect the enactment section 8371 has had on garnishment proceedings brought against an insurer for bad faith, there is nothing in that section which suggests that a garnishment proceeding is no longer a proper method to obtain an excess verdict from an insurer.

Section 8371 requires a jury to decide bad faith and punitive damages, while the court decides all other relief.

Fahy v. Nationwide Mutual Fire Insurance · filed 1995-04-13

All other relief that may be awarded under 42 Pa.C.SA. § 8371 shall be determined by the Court.

Section 8371 claims are decided by judges rather than juries.

Godak v. Nationwide Insurance · filed 1997-04-01

Reading 42 Pa.C.S. §8371 in conjunction with the definition of “court” in 42 Pa.C.S. §102, it appears, in this court’s opinion, that claims under section 8371 are to be determined by judges and not by juries.

The admission or exclusion of expert testimony in § 8371 bad faith cases remains within the trial court’s discretion.

Bergman v. United Services Automobile Ass'n · filed 1999-12-06

To the contrary, we hold that the admission or exclusion of expert testimony in bad faith cases remains a matter within the sound discretion of the trial court and subject to the rules of review applicable to discretionary decisions.

Section 8371 makes bad faith in an insurer's conduct actionable, but discovery abuses cannot be pursued under it in the same case where they occur.

General Refractories Co. v. Fireman's Fund Insurance · filed 2000-04-20

Plaintiff rightly claims that bad faith in the conduct of discovery is itself actionable under 42 P.S. 9271. (See for example: Rottmund v. Continental, 813 F. Supp. 1104 (1992).) Although directly actionable, under the bad faith statute, discovery abuses are not actionable in the same case in which they occur.

Section 8371 provides a remedy for bad faith by an insurer acting as an insurer and does not cover discovery violations or litigation conduct by the insurer as a legal adversary.

Sanders v. Farm · filed 2000-07-27

Section 8371 is designed to provide “a remedy for bad-faith conduct by an insurer in its capacity as an insurer and not as a legal adversary in a lawsuit filed against it by an insured.”

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

Martin v. National Grange Mutual Insurance · filed 2000-11-15

An insurer acts in bad faith with respect to a claim if it (1) did not have a reasonable basis for denying benefits under the policy and (2) if it knew or recklessly disregarded its lack of a reasonable basis in denying the claim.

Section 8371 provides a remedy for an insurer’s dishonest or self interested refusal to pay, while mere negligence or bad judgment is not bad faith.

Petrecca v. Allstate Insurance · filed 2001-07-09

Section 8371 of 42 Pa.C.S. creates a statutory remedy for bad faith conduct on the part of an insurer. Bad faith has been defined 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 the breach of a known duty (i.e., good faith and fair dealing), through some motive of self-interest or ill-will; mere negligence of bad judgment is not bad faith.” ... The conduct of Allstate in this instance was not straightforward and thus in bad faith.

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

Anderson v. Nationwide Insurance Enterprise · filed 2002-03-01

Under Pennsylvania case law, in order to prevail on a bad faith claim, an insured must present 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 a reasonable basis in denying the claim.” ... For the reasons stated above, we find that Suzanne Anderson has presented clear and convincing evidence that Nationwide acted in bad faith when it refused to arbitrate her claim.

Section 8371 provides an adequate legal remedy and does not make a bad faith action equitable or eliminate the jury right for a separate breach of contract claim.

Petrecca v. Allstate Insurance · filed 2002-04-10

We conclude that the trial court erred in concluding that Section 8371 provides equitable jurisdiction. Therefore, as Section 8371 is not analogous to equity claims, the fact that there is no right to a jury under 8371 has no effect on the right to a jury trial for the breach of contract claim.

Section 8371 does not provide a right to a jury trial for bad faith claims.

Mishoe v. Erie Insurance · filed 2003-05-30

In conclusion, we hold that neither 42 Pa.C.S. § 8371 itself nor the Pennsylvania Constitution provides for the right to a jury trial for bad faith claims brought under section 8371.

Section 8371 requires bad faith insurance claims to be decided by the court without a jury.

Mora v. Nationwide Mutual Fire Insurance · filed 2003-12-02

The defendant’s motion to list case for non-jury trial is granted and this case shall proceed as a non-jury proceeding relative to Count III of the complaint.

Section 8371 imposes bad faith damages when an insurer without good cause refuses to provide a defense where coverage is potentially available.

American & Foreign Insurance v. Jerry's Sport Center, Inc. · filed 2010-08-17

We further observe that by defending Insured, Royal was protecting itself from the potential of a bad faith claim. In order to ensure that insurance companies assume the defense whenever there is the potential for coverage, bad faith damages are imposed where the insurer, with no good cause, refuses to provide a defense. 42 Pa.C.S. § 8371; Frog, Switch & Mfg., 193 F.3d 742.

Section 8371 does not cover an insurer’s conduct as a legal adversary during litigation with its insured.

PHAN-KRAMER v. AMERICAN STATES INSURANCE COMPANY · filed 2023-07-31

Plaintiffs’ proposed amendment based on American States’s conduct in the litigation between them is futile because conduct as a legal adversary cannot be the basis for a statutory bad faith claim.

Section 8371 does not permit a bad faith claim based on an insurer’s conduct as a legal adversary in litigation.

Litman v. GEICO Casualty Company · filed 2023-11-21

Thus, an insurer’s conduct as a legal adversary cannot be the basis for a statutory bad faith claim.

Section 8371 permits punitive damages for bad-faith denial of wage-loss benefits under an automobile insurance policy, but not for denial of medical benefits.

Danley v. State Farm Mutual Automobile Insurance · filed 1992-12-10

As such, we will dismiss any portion of the complaint that might be construed to request punitive damages under § 8371 for medical benefit denial. ... We conclude that the statutes can co-exist and that a plaintiff can claim punitive damages under § 8371 for denial of a wage-loss claim under an auto insurance policy.

Section 8371 permits a bad faith claim based on insurer conduct beyond the scope of the MVFRL peer review process, including abuse of that process.

Hampton v. Geico Insurance · filed 2010-12-13

Accordingly, the Court finds that Plaintiff’s § 8371 bad faith claim is not preempted by § 1797, to the extent that she asserts bad faith conduct beyond the scope of § 1797(b).

Section 8371 allows a bad faith claim when an automobile insurer denies that any coverage exists, because MVFRL section 1797 procedures and remedies do not apply.

Seeger Ex Rel. Seeger v. Allstate Insurance · filed 1991-09-04

We reach a similar conclusion when the company has denied there is any coverage at all. The procedures and remedies of section 1797 do not apply in these circumstances and a claim under section 8371 will lie.

Section 8371 permits a bad faith claim to proceed when an insurer allegedly selected a biased medical peer reviewer.

Mitrick v. State Farm Mutual Automobile Insurance · filed 1991-12-24

The court has no difficulty concluding that if all those facts are true that the demurrer must be refused. A review under those circumstances would be so tainted as to be no review at all, and could not establish as a matter of law that the insurer had acted reasonably.

Section 8371 remains available when an automobile insurer disputes injury causation because § 1797 peer review addresses medical necessity.

Grove v. Aetna Casualty & Surety Co. · filed 1993-02-02

Following the reasoning of Seeger and Daumer, section 1797 does not preempt a section 8371 claim, since it is undisputed that Grove’s treatment was medically necessary. The dispute is over causation: were the injuries for which Grove has submitted treatment bills caused by the 1980 accident, or by something else? Because the procedures of section 1797 apply only to PRO reviews for the purpose of determining “medical necessity,” plaintiffs section 8371 claim may not be dismissed because of section 1797 preemption.

Section 8371 does not provide a bad-faith remedy for denied first-party medical benefits following peer review under 75 Pa.C.S. §1797, which supplies the exclusive remedy.

Conway-West v. State Farm Insurance · filed 1993-07-02

Under the facts as pled, we find that 42 Pa.C.S §8371 and 75 Pa.C.S. §1797 are in conflict and irreconcilable. The detailed provisions of the MVFRL provide the exclusive remedy for the plaintiff in this action.

Section 8371 provides a general bad faith remedy for insurance policy actions, but its remedy yields to the specific provisions of 75 Pa.C.S. § 1797 for first party benefit claims.

Barnum v. State Farm Mutual Automobile Insurance · filed 1993-12-16

Because the two provisions were enacted at the same time and cannot be reconciled, the specific provisions of 75 Pa.C.S. § 1797 must be deemed an exception to the general remedy for bad faith contained in 42 Pa.C.S. § 8371. The provisions of 75 Pa.C.S. § 1797 are to be applied to claims for first party benefits under the Motor Vehicle Financial Responsibility Law.

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

Polselli v. Nationwide Mutual Fire Insurance · filed 1994-05-05

Accordingly, we hold that the district court erred insofar as it held that under Pennsylvania law a preponderance of the evidence standard is sufficient to prove bad faith on the part of an insurer.

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

Terletsky v. Prudential Property & Casualty Insurance · filed 1994-10-25

To recover under a claim of bad faith, the Terletskys were required to show that Prudential lacked a reasonable basis for partially denying payment of the arbitration award and that Prudential recklessly disregarded a lack of reasonable basis in denying the payment. ... Therefore, we conclude that Prudential had a reasonable basis for disputing a portion of Alexander Terletsky’s arbitration award. Thus, the Terletskys have not proven that Prudential acted in bad faith. ... Hence, the Terletskys are not entitled to damages under the “bad faith” statute 42 Pa.C.S.A. § 8371.

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

Continental Casualty Co. v. Diversified Industries, Inc. · filed 1995-03-27

The court disagrees with both of these contentions. ... This statute has been interpreted to create an independent cause of action for an insurer’s bad faith conduct.

Section 8371 requires proof that the insurer lacked a reasonable basis for denying a claim.

Klinger v. State Farm Mutual Automobile Insurance · filed 1995-08-21

A plaintiff pursuing a claim under section 8371 must prove that an insurer did not have a reasonable basis for denying a claim.

Section 8371 does not support a bad faith action based on an insurer’s claim investigation or adjustment when coverage fails on the merits and the handling was not actionable under Pennsylvania common law before enactment.

Younis Bros. & Co. v. Cigna Worldwide Insurance · filed 1995-09-25

I therefore conclude that an insurer’s investigation and adjustment of a claim does not support an action under § 8371 where an insured’s claim for coverage fails upon its merits and the insurer’s actions in handling the claim would not have been actionable under Pennsylvania common law prior to the enactment of § 8371.

Section 8371 lets an insured pursue a bad faith claim even when the insurer uses the PRO system.

Pierce v. State Farm Insurance · filed 1994-10-20

Section 8371 is designed to protect the insured from bad faith on the part of the insurance providers, irrespective of whether or not the bad faith action occurs after the insurance company chooses to use the PRO system.

A § 8371 claim is unavailable when the specific MVFRL remedy governs first-party automobile injury benefits.

Gemini Physical Therapy and Rehabilitation, Inc. v. State Farm Mutual Automobile Insurance Company · filed 1994-12-14

We find this statutory construction to be convincing and predict the Pennsylvania Supreme Court would similarly rule on this matter. Thus, the district court did not err in dismissing Gemini’s claim brought under 42 Pa.C.S. § 8371.

A § 8371 claim may be dismissed when the complaint seeks only first-party medical benefits under the MVFRL.

Cohen v. State Farm Insurance · filed 1996-06-10

Upon review of plaintiff’s complaint, we find that her only claim is for the payment of her medical bills under her first party benefits. Accordingly, we grant defendant’s demurrer as to Count III of the complaint.

Section 8371 permits a bad faith claim when an insurer allegedly acts in bad faith during peer review of first-party medical benefits; the remedy under 75 Pa.C.S. § 1797 does not preclude that claim.

Bacstrom v. State Farm Insurance · filed 1998-01-26

In our view, this section of the MVFRL does not address the situation found in the instant case, namely, the instance where the insurer has allegedly submitted the insured’s claims to a PRO of its choice for review and has acted in bad faith in the process. This is where the provisions of section 8371 come into play to protect persons such as the Bacstroms from bad faith conduct on the part of an insurance company. Section 8371 acts as a complementary or supplementary remedy for an insured aggrieved by the behavior of an insensitive insurer.

Section 8371 does not support a bad faith claim based only on an insurer's referral of medical bills to a peer review organization.

Cacchiotti v. Material Damage Adjustment Corp. · filed 1996-06-17

A cause of action under 42 Pa.C.S. §8371 cannot only be based on the contention that a carrier acted in bad faith by referring bills to a PRO where the insured believes there was no reasonable basis for the bills to be reviewed.

Section 8371 permits damages, including punitive damages, when an insurer abuses the peer review process.

Slaby v. Nationwide Insurance · filed 1997-08-13

We find that public policy requires that the insurer can be held liable for damages under section 8371, including punitive damages, if they abuse the very process that was enacted to shield them.

Section 8371 permits bad faith remedies to coexist with other statutory remedies, allowing the plaintiff to seek the remedy package providing the greatest relief.

Hice v. Prudential Insurance · filed 1997-09-23

The well-reasoned opinion of Judge Wettick in the Knox decision aforementioned, as well as the reasoning in the other two decisions, leaves no doubt that the remedies of 42 Pa.C.S. §8371 of the Judicial Code and 75 Pa.C.S. §§1716, 1797 and 1798 of the Motor Vehicle Financial Responsibility Law can coexist and the plaintiff is entitled to the remedy package that provides the greatest relief. An insurance company cannot declare itself harmless by insulating itself from a bad faith claim, or by claiming it relied upon a peer finding which delves into matters of which the Peer Review Organization has no statutory authority.

Section 8371 permits bad faith remedies in insurance policy actions, but those remedies are unavailable for first party medical claims governed by the MVFRL.

Evans v. State Farm Insurance · filed 1997-10-03

While section 8371 would appear to permit a bad faith cause of action in the instant matter, such actions are precluded by the remedies available under the MVFRL.

Section 8371 does not support a bad faith claim based solely on an insurer’s request for peer review of medical bills.

Grissinger v. Nationwide Mutual Insurance · filed 1998-01-09

The issue before us then is whether Nationwide acted in bad faith by requesting peer review evaluations of plaintiff’s treatment and condition. In light of the decisions previously rendered by this court, we find that Nationwide conducted itself in a manner expressly permissible by law. Plaintiff has provided no foundation upon which a cause of action for bad faith could be asserted against Nationwide.

Section 8371 allows an insured to maintain a bad faith action for denial of first party wage loss benefits when § 1716 is not the exclusive remedy.

Schleinkofer v. National Casualty Co. · filed 2004-09-29

Based upon the case law and the differences inherent in “unreasonable” conduct versus “bad faith” conduct, this Court concludes that if the Pennsylvania Supreme Court were presented with the issue before this Court it would determine that the Plaintiff may maintain a bad faith action with regard to denial of first party wage loss benefits pursuant to 42 Pa. C.S.A. § 8371 because 75 Pa.C.S.A. § 1716 does not provide the exclusive remedy for such a claim.

Section 8371 permits statutory bad faith remedies against an insurer, but its application is preempted for first-party medical benefits claims under section 1797 and remains available for lost-wage claims under section 1716.

Harris v. Lumberman's Mutual Casualty Co. · filed 2006-01-23

Accordingly, the special provision, section 1797, preempts the bad faith statute. ... Accordingly, section 1716 does not preempt the bad faith statute and plaintiffs claim for statutory bad faith with respect to defendant’s denial of lost wages benefits will not be dismissed.

Section 8371 permits an insured to pursue a bad faith claim when an insurer abuses the peer review process beyond the scope of § 1797.

Perkins v. State Farm Insurance · filed 2008-12-16

The Court finds persuasive the reasoning of Schwartz and the growing majority of cases that have reached similar holdings and will apply their reasoning to the case at hand. ... These allegations of abuse of the PRO process are not within the scope of § 1797, and courts have repeatedly held that such allegations state a claim under § 8371. ... Perkins’s allegations, although thin, suffice to state a claim under § 8371, and therefore, State Farm’s motion to dismiss Perkins’s bad faith claim will be denied.

Section 8371’s bad faith remedy is unavailable for denial of first-party medical benefits governed by the remedies in 75 Pa.C.S. § 1797(b).

Kuropatwa v. State Farm Mutual Automobile Insurance · filed 1995-12-11

However, the Pennsylvania Superior Court declared that such actions are not permissible under the MVFRL, as amended 75 Pa.C.S. § 1797(b). ... Barnum was reversed only on the issue of the necessity for seeking reconsideration before filing a court action and remains the controlling precedent on the issue of extracontractual relief under the MWRL.

Section 8371 permits a bad faith claim based on an insurer’s investigation even when the related breach of contract claim fails.

Gold v. State Farm Fire and Casualty Co. · filed 2012-07-24

However, if bad faith is asserted as to conduct beyond a denial of coverage, the bad faith claim is actionable as to that conduct regardless of whether the contract claim survives.

Section 8371 bad faith is not limited to conduct that violates an express term of the insurance policy.

BECKELMAN v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2023-12-21

A claim of bad faith clearly is not limited to a violation of the express terms of the policy.

Section 8371 provides a statutory bad faith claim that may proceed separately from a breach of contract claim.

Hanover Area School District v. CM Regent Insurance Company · filed 2024-08-08

Plaintiff does not assert a separate common law bad faith claim; Count VI is statutory claim brought under 42 Pa. Cons. Stat. §8371. (Doc. 6 ]183—201). So the principle discussed above does not provide a basis for 12(b)(6) dismissal here.

Section 8371 creates a separate cause of action for bad faith against insurance companies that can survive even when an underlying breach of contract claim is barred by a policy limitation.

Margolies v. State Farm Fire & Casualty Co. · filed 1992-12-22

Thus, even if plaintiffs’ breach of contract claim were barred by the policy’s limitation provision, the § 8371 bad faith claim would survive, since it is independent of the underlying claim.

Section 8371 permits bad faith claims based on an insurer’s conduct after the underlying incident to be adjudicated separately from the contract dispute.

Fleming v. CNA Insurance · filed 1999-06-21

As a general rule, bad faith claims under 42 Pa.C.S. § 8371 are initiated based upon behavior of an insurance company occurring subsequent to the negligent or intentional behavior of a third party which spawned the original contractual suit. As was the case with plaintiffs claim for interest and wage loss, such bad faith behavior is temporally and factually distinct from any behavior that would impact upon the outcome of the damages and liability disposition of the underlying contract claim. ... Since claims for bad faith are deemed to be and are adjudicated separately and apart from the contract disputes upon which they are based, we find defendants’ argument that its payment of the judgment against it should operate to release it from plaintiffs bad faith claim to border on the frivolous.

Section 8371 creates an independent bad-faith cause of action and provides additional damages remedies without displacing contractual good-faith claims.

Benevento v. Life USA Holding, Inc. · filed 1999-09-29

Section 8371 did and was intended to create an independent cause of action, separate and distinct from the underlying contractual insurance claims arising from the express terms of the contract of insurance. ... The bad faith statute therefore simply provides an insured with additional damages remedies not previously allowed in contract actions' at common law; it does not preclude a claim for breach of the contractual obligation of good faith with the right to recover whatever common law contract damages may be appropriate.

Section 8371 authorizes additional damages beyond common-law compensatory damages and is independent of a contract action.

Harlan v. Erie Insurance Group · filed 2006-02-16

Furthermore, such contract right of action is wholly independent from the statutory bad faith action, 42 Pa.C.S. §8371, as the bad faith statute is not inconsistent with the common law and the statute merely authorizes additional damages beyond the common-law compensatory damages.

Section 8371 treats an insurer's post incident bad faith conduct as factually and temporally distinct from its obligation to pay under the insurance contract.

Dodds v. Pulte Home Corp. · filed 2006-09-28

Plaintiffs’ reliance on Nealy v. State Farm Mutual Auto. Insurance Co., 695 A.2d 790 (Pa.Super.1997), is misplaced. ... As noted, the “bad faith” clause of section 8371 is unique. The obligation to pay under an insurance contract is distinct in time and facts from the actions of the insurance company after the incident giving rise to the claim.

A Section 8371 bad faith claim can be evaluated before the related breach of contract claim is resolved.

Ferguson v. USAA General Indemnity Company · filed 2019-12-05

Having found resolution of Plaintiffs’ breach of contract claim is not a pre- requisite to evaluating their bad faith claim, this begs the question of whether the distinctness of the claims supports severing them.

Section 8371 permits a bad faith claim even when the insurer pays the insurance claim.

IRONSHORE SPECIALTY INSURANCE COMPANY v. CONEMAUGH HEALTH SYSTEM, INC. · filed 2022-05-16

However, as the Court has previously found, simply paying an insurance claim is not sufficient to foreclose a claim for bad faith under Section 8371.

Section 8371 allows a bad faith claim to proceed when factual allegations about an insurer’s investigation and claim valuation plausibly show more than a disagreement over the claim’s value.

DEAL v. NATIONWIDE PROPERTY AND CASUALTY INSURANCE COMPANY · filed 2022-10-31

In viewing these allegations in a light most favorable to Ms. Deal, her Complaint presents a plausible claim for bad faith that moves beyond a disagreement in claim valuation.

Section 8371 permits a bad faith claim to proceed when the complaint plausibly alleges an inadequate investigation and offers that do not reflect the insured’s losses.

DUBBS DRED, INC. v. AUTO-OWNERS INSURANCE COMPANY · filed 2023-12-08

Here, as to both the failure to investigate and lowball components to Dubbs Dred’s bad faith claim, the Amended Complaint sufficiently pleads plausible facts to support a bad faith claim at this stage.

Section 8371 requires factual allegations supporting both a lack of reasonable basis for denying benefits and the insurer’s knowledge or reckless disregard of that lack; conclusory allegations are insufficient.

QIN v. TRAVELERS PERSONAL INSURANCE COMPANY · filed 2023-12-15

Without pleading sufficient facts, the allegations in the complaint fail to satisfy the two prongs necessary to establish a bad faith claim, namely that the insurer lacked a reasonable basis for denying benefits under the policy, and it knew or recklessly disregarded its lack of a reasonable basis in denying the claim.

Section 8371 bad faith claims are independent of the underlying insurance contract claim and may be filed before that claim is decided.

Cid, H. v. Erie Insurance Group · filed 2016-10-20

Moreover, the trial court erred as a matter of law in concluding that each of the claims depends on the outcome of the UM/UIM arbitration proceeding in Montgomery County. ... This Court has held that bad faith claims are “neither related to nor dependent on the underlying contract claim against the insurer[,]” and an insured is “not required to wait until the merits of the contract claim [are] decided to file suit for bad faith.”

Section 8371 bad-faith claims based on the denial of benefits under an ERISA-governed plan are preempted by ERISA.

Garner v. Capital Blue Cross · filed 1994-07-13

Count IV and Claim III assert that Defendants denied Ms. Wileman’s claim in bad faith. See 42 Pa.Cons.Stat. § 8371. ... Thus, we find Count IV and Claim III preempted.

A § 8371 bad faith claim concerning an ERISA disability plan is expressly preempted and must be dismissed.

Haase v. Metropolitan Life Insurance Co. · filed 2016-08-01

Accordingly, Barber requires dismissal of Plaintiff’s bad faith claim under 42 Pa. Cons. Stat. § 8731.

Section 8371 bad-faith claims seeking damages beyond contract benefits are preempted when based on the denial of claims under a FEHBA plan.

Negron v. Patel · filed 1998-05-07

This count is stated under a state insurance statute, 42 Pa.Cons. Stat. § 8371, which provides that if a court finds that an insurance, company has acted in bad faith toward an insured, the insured can recover interest on the amount of the claim of 3% over the prime rate, punitive damages, and attorney’s fees and costs. This statute is clearly a law that relates to insurance plans in a meaningful way. And because an action under this statute is an action seeking damages other than contract damages for the denial of claims under a FEHBA plan, Count XXV is preempted.

Section 8371 bad faith claims arising from ERISA-governed benefit plans are preempted by ERISA.

DOE v. INDEPENDENCE BLUE CROSS · filed 2023-11-21

Ms. Doe’s bad faith insurance claim under 42 Pa. C.S.A. § 8371 is preempted by ERISA.

Section 8371 bad faith claims are not excepted from ERISA preemption by the saving provision.

Ferry v. Mutual Life Ins. Co. of New York · filed 1994-02-14

Thus, this Court finds that plaintiffs’ claims for “bad faith” based upon § 8371 are not excepted from preemption by the saving provision.

Section 8371 permits a bad faith claim only in an action arising under an insurance policy and does not override workers’ compensation exclusivity for an insurer’s handling of benefit claims.

Winterberg v. CNA Insurance · filed 1994-10-25

First, according to the express terms of the statute, a bad faith claim may only be brought “in an action arising under an insurance policy.” ... Therefore, plaintiff may not avail herself of § 8371 insofar as it concerns defendant’s refusal to pay her worker’s compensation benefits and its general handling of her insurance claims.

Section 8371 applies only to actions on insurance policies and regulates insurance.

Smith v. Continental Casualty Co. · filed 2002-09-16

By its terms, § 8371 applies only to “actions on insurance policies” and, from a common-sense view, regulates insurance.

ERISA preempts Pennsylvania’s bad faith statute under either theory addressed by the court.

Snook v. Penn State Geisinger Health Plan · filed 2003-01-31

Under either theory then, ERISA preempts Pennsylvania’s bad-faith statute.

Section 8371's bad faith remedy is preempted by ERISA Sections 502 and 514 when applied to an ERISA plan.

Nguyen v. Healthguard of Lancaster, Inc. · filed 2003-10-07

Mrs. Nguyen’s claim under the Pennsylvania Bad Faith Insurance statute is preempted under both Section 502 and Section 514 of ERISA.

Section 8371 provides an additional state bad faith remedy that is subject to ERISA conflict preemption for ERISA plan claims.

Barber v. Unum Life Insurance Company of America · filed 2004-09-07

42 Pa.C.S. § 8371 is such a statute because it is a state remedy that allows an ERISA-plan participant to recover punitive damages for bad faith conduct by insurers, supplementing the scope of relief granted by ERISA. Accordingly, 42 Pa.C.S. § 8371 is subject to conflict preemption.

Section 8371 authorizes Pennsylvania bad faith insurance claims, but ERISA preempts those claims when they concern an ERISA plan.

Harding v. Provident Life & Accident Insurance · filed 2011-08-19

Indeed, in light of Barber, “[Plaintiff’s claim that the ERISA savings clause exempts 42 Pa.C.S. § 8371 from the preemption provisions of ERISA is not supported by law.” Id. Given this precedent, see Barber, 383 F.3d at 140-44, which the Court is bound to follow, Plaintiffs bad faith claims are preempted by ERISA.

An action under section 8371 sounds in tort and is subject to a two-year statute of limitations.

Haugh v. Allstate Insurance Company · filed 2003-02-28

After considering the germane precedents we conclude that the district court correctly predicted that the Supreme Court of Pennsylvania would hold that an action under section 8371 sounds in tort and thus is subject to a two-year statute of limitations under 42 Pa. Cons.Stat. § 5224(7).

Section 8371 bad faith claims are subject to a two-year statute of limitations.

Knouse v. General American Life Insurance · filed 2004-12-06

We predict that the Supreme Court of Pennsylvania would assign a two-year statute of limitations to plaintiffs’ bad faith claims and a six-year statute of limitations to plaintiffs’ UTPCPL claims.

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

Knouse v. General American Life Insurance · filed 2004-12-06

The Third Circuit recently conducted an extensive inquiry into the limitations period applicable to violations of Pennsylvania's bad faith statute using a standard identical to our own, and we agree with our sister circuit's determination that the Supreme Court of Pennsylvania would apply a two-year statute of limitations to such claims.

A § 8371 bad faith claim has a two-year limitations period that begins when the insurer clearly denies coverage; later refusals arising from that denial do not start separate periods.

Sikirica v. Nationwide Ins Co · filed 2005-08-04

Although the outcome of this case does not turn on whether the limitations period is two, four or six years, we apply the two-year limitations period as predicted by Haugh. ... Adamski rejected this argument and held that each of these alleged acts was related to the initial denial of coverage, not a separate act of bad faith. ... Applying the Adamski rule, Sikirica’s bad faith claim is barred by the two-year statute of limitations.

Section 8371 bad faith claims have a two-year limitations period that begins when the insurer gives definite notice that it will not defend or indemnify.

Jeffrey J. Sikirica, Esq., as Trustee of Pittsburgh Beauty Academy, Inc. v. Nationwide Insurance Company Jeffrey J. Siki · filed 2005-08-04

The District Court, rejecting Sikirica’s argument, relied on Adamski v. Allstate Insurance Co., 738 A.2d 1033 (1999), in which the Pennsylvania Superior Court held a claim for bad faith under 42 Pa. Cons.Stat. Ann. § 8371 accrued when the insurer first provided definite notice of a refusal to indemnify or defend. ... We reject Sikirica’s argument to the contrary. ... Applying the Adamski rule, Sikirica’s bad faith claim is barred by the two-year statute of limitations.

A § 8371 bad faith claim accrues when the insurer denies coverage and is subject to a two-year limitations period, even if the claim is later assigned.

Campbell v. State Farm Mutual Automobile Insurance · filed 2008-04-07

Therefore, Mr. Heathcock’s claim for bad faith, which is now plaintiffs claim by virtue of the assignment, accrued on August 9, 2002. This suit was filed more than two (2) years later. Accordingly, plaintiffs claim for bad faith pursuant to 42 Pa.Cons.Stat. § 8371 is untimely and defendant’s motion for summary judgment of Count III will be granted.

Section 8371 bad faith claims are subject to a two-year statute of limitations.

CRS Auto Parts, Inc. v. National Grange Mutual Insurance · filed 2009-02-03

Given the two year statute of limitations for a bad faith claim under section 8371 and the four year statute of limitations for a common law bad faith claim sounding in contract, the Court must next ascertain the accrual date for each of these limitations periods.

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

Bariski v. Reassure America Life Insurance · filed 2011-07-06

A cause of action alleging bad faith under 42 Pa. Cons.Stat. § 8371 is subject to a two year statute of limitations.

Section 8371 bad faith claims have a two-year limitations period that begins when the insurer denies coverage.

United National Insurance v. Indian Harbor Insurance · filed 2016-02-08

A two-year statute of limitations applies for a § 8371 claim. ... A bad faith claim accrues when the insurer denies coverage. ... Therefore, this claim for relief accrued on October 6, 2010. However, the present action was not filed until October 9, 2014, more than four years after the claim accrued. As such, both the statutory and common law breach of duties claims are barred by the statute of limitations with regard to the Jackson settlement.

A claim under § 8371 is subject to a two-year limitations period.

Feingold v. Brooks · filed 2020-01-24

The Pennsylvania statute of limitations for a bad faith claim is two years.

Section 8371 creates a bad faith claim independent of the underlying contract claim, so an insurance policy’s one-year suit limitation does not bar it.

March v. Paradise Mutual Insurance · filed 1994-07-11

However, as appellant’s bad faith claim brought under 42 Pa.C.S. § 8371 is independent of her contract claim, the bad faith claim is not affected by the one-year limitations period in the insurance contract.

Section 8371 treats an insurer's bad faith as a separate tort subject to a two year statute of limitations.

Nelson v. State Farm Mutual Automobile Insurance · filed 1997-12-12

The Pennsylvania Supreme Court in 1981 having considered bad faith as a “new tort”, and given the weight of state law authority since then, we predict that the Supreme Court of Pennsylvania would conclude that an action under § 8371 sounds in tort, and thus would be subject to a two year statute of limitations under 42 Pa. Cons.Stat. Ann. § 5524(7).

Section 8371 makes a bad faith action subject to a two-year statute of limitations.

Ash v. Continental Insurance Co. · filed 2004-11-03

We find the reasoning supporting those decisions to be persuasive and thus hold that a bad faith action under Section 8371 is subject to a two-year statute of limitations.

Section 8371 creates a statutory tort action subject to a two-year statute of limitations.

Ash v. Continental Insurance · filed 2007-10-11

Consequently, we conclude the Superior Court properly determined an action under § 8371 is a statutorily-created tort action and we therefore hold such an action is subject to the two-year statute of limitations under 42 Pa.C.S. § 5524.

Section 8371 imposes a two year limitations period for a bad faith claim that begins when the insured first learns the insurer is denying coverage.

Cozzone v. AXA Equitable Life Insurance Society of the United States · filed 2012-03-14

The Court also agrees with both parties that under 42 Pa.C.S.A. 8371 there is a two year statute of limitations for a bad faith claim and that it begins to run when insured first learned that the insurance company was denying coverage.

Section 8371 requires a bad faith claim to be filed within two years after the insurer denies benefits.

Mail Quip, Inc. v. Allstate Ins. Co. · filed 2019-05-23

Integral to a bad faith action under § 8371 is that the insurer denied benefits under the policy. ... This allowed Plaintiff two years from this date, or until February 3, 2018, to file a claim for bad faith under § 8371. ... Therefore, Plaintiff's Bad Faith claim against Defendant is untimely and must be dismissed.

Section 8371 requires a bad faith claim to be filed within two years.

MCATEER v. STATE FARM INSURANCE COMPANY · filed 2020-11-23

A two-year statute of limitations applies for a § 8371 claim.

Section 8371 bad faith claims are subject to a two-year statute of limitations.

Devine v. Geico General Insurance Company · filed 2022-01-07

“Claims for bad faith under 42 Pa. C.S.A. § 8371 are subject to a two-year statute of limitation.”

Section 8371 bad faith claims must be filed within two years after the insurer definitively denies coverage.

DANA MINING COMPANY OF PENNSYLVANIA, LLC v. BRICKSTREET MUTUAL INSURANCE COMPANY · filed 2022-03-09

A two-year statute of limitations applies for a § 8371 claim. ... A bad faith claim, in particular, accrues when the insurer definitively denies coverage.

A Section 8371 bad faith claim accrues when the insurer first refuses to pay benefits and is subject to a two-year limitations period.

Benscoter v. Nationwide Mutual Insurance Company · filed 2023-08-22

For a claim of bad faith under 42 Pa. C.S. § 8371, that is “when the refusal to pay first occurred.”114 ... Because Benscoter did not file suit until June 17, 2022, more than two years after the statute of limitations began to run on a potential claim of bad faith, the Court grants Nationwide’s Motion as to Count V.

A claim under § 8371 has a two-year statute of limitations.

PHAN-KRAMER v. AMERICAN STATES INSURANCE COMPANY · filed 2023-09-14

The statute of limitations on a bad faith claim under 42 Pa. C.S.A. § 8371 is two years.

A Section 8371 bad-faith claim may be arbitrated under an applicable arbitration agreement; the FAA preempts a state rule reserving such claims for judges.

Brayman Construction Corporation v. Home Insurance Company Zurich North America Insurance Company · filed 2003-02-12

As discussed above, Brayman’s § 8371 claim falls within the RPA’s arbitration provision because the claim concerns its “rights with respect to” the RPA dispute at issue. ... But Nealy directly conflicts with, and therefore is preempted by, the FAA. The FAA prevents state law from undermining parties’ contracts to arbitrate.

A board of arbitrators has jurisdiction to hear bad faith claims brought under § 8371.

Hladinec v. Nationwide Insurance · filed 2000-02-08

We concur with the Oliver court, and find that a board of arbitrators does have jurisdiction to hear bad faith claims brought under 42 Pa.C.S .§8371.

Section 8371 bad faith claims cannot be decided by arbitrators.

Calabrese v. Colonial Insurance · filed 2000-03-03

As a consequence, arbitrators may not consider bad faith claims predicated upon 42 Pa.C.S. §8371, Nealy v. State Farm Mutual Automobile Insurance Co., 695 A.2d 790, 794 (Pa. Super. 1997), nor can arbitration proceedings be compelled in the absence of an arbitration clause in the policy. McFarley v. American Independent Insurance Co., 444 Pa. Super. 191, 195, 663 A.2d 738, 741 (1995) (“the procedure to be followed in enforcement of uninsured motorist benefits, absent an actual contract containing an arbitration clause,... is the filing of a complaint in assumpsit”).

Section 8371 attorney fees are calculated under Pennsylvania Rule of Civil Procedure 1716 using the lodestar method.

Jurinko v. Medical Protective Co. · filed 2008-12-24(3)

For these reasons, Rule 1716 governs the calculation of attorneys’ fees in a § 8371 case.

Section 8371 permits punitive damages for insurer bad faith without separate proof of outrageous conduct.

Smith v. Allstate Insurance · filed 2012-11-08

Nonetheless, contrary to Allstate’s contention, the Court finds that Plaintiff need not present evidence of outrageousness pursuant section 908 of the Restatement (Second) of Torts in order to provide legally sufficient evidence to sustain her- claim for punitive damages.

Section 8371 does not require compensatory damages for a statutory bad faith claim to succeed.

Wolfe v. Allstate Property & Casualty Insurance · filed 2015-06-12

Therefore, Wolfe does not need compensatory damages to succeed on his statutory bad faith claim, which only permits recovery of punitive damages, interest, and costs.

Section 8371 permits a court to deny attorney’s fees entirely when the fee request is outrageously excessive.

Clemens v. New York Central Mutual Fire I · filed 2018-09-12

Finding no abuse of discretion, we will affirm and, in doing so, take the opportunity to formally endorse a view already adopted by several other circuits—that is, where a fee-shifting statute provides a court discretion to award attorney’s fees, such discretion includes the ability to deny a fee request altogether when, under the circumstances, the amount requested is “outrageously excessive.”

Section 8371 does not provide compensatory damages for a bad faith claim.

CAMPITELLI v. PLYMOUTH ROCK ASSURANCE CORPORATION · filed 2023-08-08

We conclude, accordingly, that Plaintiff cannot recover compensatory damages in connection with his bad faith claim in Count I of the Second Amended Complaint.

A bad faith claim under § 8371 based on denial of coverage accrues when the insurer initially denies coverage.

Gordon v. LM General Insurance Co · filed 2024-10-03

All the Gordons’ bad faith claims arising from Liberty’s handling of their UIM claim accrued when Liberty initially denied coverage.

Section 8371(1) interest is calculated using the applicable annual rate and the time accrued when determining the maximum potential recovery.

KATZ v. DELUCA · filed 2024-05-15(1)

Thus, plaintiffs could recover a maximum of $12.36 in interest based on § 8371 for the year 2020.

Section 8371 permits a statutory punitive damages claim to proceed when the evidence could establish that an insurance policy existed.

Fair v. State Farm Mutual Automobile Insurance · filed 1992-10-22(2)

Given the foregoing a jury could find that a policy was in effect and we will not bar plaintiff’s claim for statutory punitive damages pursuant to 42 Pa.C.S. §8371 ... Court denies defendants’ prehminary objection to statutory punitive damages contained in Count IV and also to defendants’ request for a more specific pleading for unpaid medical bills and to strike plaintiff’s claim for damages in excess of $100,000.

Section 8371 does not support enhanced interest and attorney fees when the evidence does not establish insurer bad faith.

Turner Construction Co. v. First Indemnity of America Insurance · filed 1993-06-01

The detailed findings from which the Special Master derived his summary findings, however, do not describe facts that we regard as sufficient to support an affirmative finding of bad faith (see Findings 265-288). While we certainly do not regard FIA as an exemplar of a diligent and responsible surety, we are not convinced that “ill will” and “self interest”, and not “mere negligence and bad judgment”, motivated FIA’s actions. Coyne, supra, 771 F.Supp. at 677. Under these circumstances, we will not require FIA to pay superinterest and attorney’s fees pursuant to § 8371.

Section 8371 permits punitive damages for an insurer’s bad faith denial of insurance benefits when its remedies can be reconciled with more specific statutes.

Milton S. Hershey Medical Center v. State Farm Insurance · filed 1992-12-08

In conclusion, the court finds that the provisions in section 1716 are not in conflict with the punitive damages remedy for bad faith under section 8371. The statutes shall be construed to give effect to both. The court denies defendant’s motion to dismiss plaintiff’s claim for punitive damages based upon bad faith denial of wage loss benefits.

Alleging bad faith under § 8371 can support a possible punitive damages claim if bad faith is proven.

Abdelaziz v. Millville Mutual Insurance · filed 1994-09-28(2)

By alleging “bad faith” within the context of 42 Pa.C.S. §8371, the plaintiffs are establishing a possible entitlement to punitive damages if “bad faith” is proven at the time of trial.

Section 8371 requires clear and convincing evidence of bad faith and proof that the insurer lacked a reasonable basis for denying benefits.

MGA Insurance v. Bakos · filed 1997-07-23

A recovery for bad faith requires clear and convincing evidence of bad faith, rather than mere insinuation, and a showing by the insured 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 a reasonable basis in denying the claim. ... Accordingly, as the certified record does not support a finding that appellant acted in bad faith by appealing the award of the arbitration panel, we find that the trial court erred in awarding attorney fees to appellee.

Section 8371 permits a court to award interest, attorney’s fees, and costs when an insurer has acted in bad faith toward its insured.

Birth Center v. St. Paul Companies, Inc. · filed 1999-03-09

Pursuant to Section 8371, a court may award interest, attorney’s fees and costs where the insurer has been found to have acted in bad faith toward its insured.

Section 8371(1) permits interest on the amount of an insurance claim from the date the claim was made, and the court may award compound interest.

Colyer v. National Grange Mutual Insurance · filed 2001-05-04(1)

Next, there is no dispute that section 8371 is silent as to how to calculate interest due and as to when the interest begins to run. An award of interest is permitted “on the amount of the claim from the date the claim was made.” 42 Pa.C.S. §8371(1). NGM became aware of plaintiff Colyer’s claim against Ebac as early as June 12, 1995. Plaintiff’s complaint ¶23. As an insurer’s duties and/or obligations under a policy are triggered once an insurer is placed on notice of a claim against its insured, this court began calculating interest on June 12,1995. In deciding to apply compound as opposed to simple interest, this court took into the consideration, inter alia, the purpose of the statute and the fact that had the legislature solely intended the interest to be simple, it could have stated as much. This court, in applying its discretion, elected to use compound interest.

Section 8371 authorizes additional remedies for insurer bad faith without barring otherwise available compensatory damages.

Birth Center v. St. Paul Companies, Inc. · filed 2001-12-31

The statute does not prohibit the award of compensatory damages. It merely provides an additional remedy and authorizes the award of additional damages.

Section 8371 provides a statutory remedy for insurer bad faith, including interest, punitive damages, and court costs and attorney’s fees.

Hollock v. Erie Insurance Exchange · filed 2002-01-07

Section 8371 creates a statutory remedy for bad faith conduct of insurers. If it is determined that an insurer has acted in bad faith, the insured is entitled to an award of interest on the amount of the claim from the date the claim was made, punitive damages, and court costs and attorney’s fees against the insurer.

Section 8371 permits recovery of attorney fees incurred prosecuting a statutory bad faith claim arising under an insurance policy.

Bonenberger v. Nationwide Mutual Insurance · filed 2002-01-23(3)

We find Nationwide’s reading of the statutory provision contrived. The court in this matter found that Nationwide engaged in bad faith in an action brought by Bonenberger arising under an insurance policy. It is absurd to argue that Bonen-berger could recover the costs of pursuing recovery on the UIM claim and be denied recovery of attorney fees in the action which determined that Nationwide engaged in bad faith for its failure to pay those same UIM benefits.

Section 8371 requires an insurer’s refusal to indemnify to be in bad faith before attorneys’ fees may be awarded, and bad faith means a frivolous or unfounded refusal involving a dishonest purpose or breach of a known duty.

Regis Insurance Co. v. Wood · filed 2004-06-08

Whether under Section 8371, supra, or the Declaratory Judgment Act, an award of attorneys’ fees where an insurer refuses to indemnify in an underlying case requires a showing that such refusal was in bad faith. Section 8371 “bad faith” by an insurer is any frivolous or unfounded refusal to pay proceeds of a policy, even if the refusal does not rise to the level of fraud; it imports dishonest purpose and means breach of a known duty of good faith and fair dealing through some motive of self-interest or ill-will.

Section 8371 permits punitive damages against an insurer upon a finding of bad faith toward the insured.

Upright Material Handling Inc. v. Ohio Casualty Group · filed 2005-01-19

The statute also states that the only prerequisite to an award of punitive damages is a finding of bad faith.

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

Valley v. State Farm Fire & Casualty Co. · filed 2006-12-12

Punitive damages and attorneys fees are available to Valleys under 42 Pa.C.S.A. § 8371, which provides: ... (3) Assess court costs and attorney fees against the insurer.

Section 8371(2) allows an insured to recover punitive damages when an insurer acts in bad faith in connection with an insurance claim.

Sparrow v. PACE/CM, Inc. · filed 2011-02-07(2)

There is a statutory exception to this rule in that 42 Pa. C.S. §8371(2) authorizes the recovery of punitive damages against an insurer which acts in bad faith towards its insured in connection with a claim that the insured presents under the insured’s insurance contract.

Section 8371 provides specified remedies for insurer bad faith, while compensatory damages are available through common law contract claims rather than under the statute itself.

Simmons v. Nationwide Mutual Fire Insurance · filed 2011-04-20

As Defendant correctly notes, under Pennsylvania law, a plaintiff cannot recover compensatory damages based on § 8371. ... At the same time, however, § 8371 does not prohibit an award of compensatory damages, ... Compensatory damages are available under Pennsylvania’s common law of contracts, even where the action is brought under a bad faith theory.

Section 8371(3) does not allow expert witness fees as court costs.

Grossi v. Travelers Personal Insurance Co. · filed 2013-11-01(3)

Accordingly, we determine the plain language of section 8371 does not permit re-eovery of expert witness fees in an award of “court costs.”

Section 8371 allows punitive damages and attorney’s fees without capping the amount recoverable.

Minissale v. State Farm Fire & Casualty Co. · filed 2013-12-20

It is undisputed that punitive damages and attorneys’ fees are available under 42 Pa. Cons. StatAnn. § 8371 and there is no cap on the amount that can be recovered.

Section 8371(1) permits a court to award interest on the insured’s claim at the prime rate plus 3%.

Clemens v. New York Central Mutual Fire Insurance Co. · filed 2017-08-29(1)

Section 8371 permits courts to “[a]ward 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%.” 42 Pa. C.S.A. § 8371(1). An award of interest is wholly within the discretion of the trial court.

Section 8371 permits punitive damages, attorneys’ fees, interest, and costs for statutory bad faith, but does not permit compensatory damages.

REAM v. NATIONWIDE PROPERTY & CASUALTY INSURANCE COMPANY, NAIC · filed 2019-09-09

While the Pennsylvania bad faith statute does not prohibit the award of compensatory damages for common law contract claims, such damages are not recoverable in a claim predicated on § 8371.

Section 8371 authorizes interest, punitive damages, court costs, and attorney’s fees against an insurer.

Barbato v. Progressive Specialty Insurance Company · filed 2021-07-19(1)-(3)

Section 8371 authorizes awards of interest, punitive damages, court costs and attorney’s fees against an insurer.

Section 8371 permits a policyholder in a bad faith action to recover claim interest at the prime rate plus 3%, punitive damages, and court costs and attorneys’ fees.

Mitchellville Plaza Bar LP v. The Hanover American Insurance Company · filed 2022-09-26

Under Pennsylvania law, a policyholder may recover from its insurer in a bad faith action “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%,” punitive damages, and court costs and attorneys’ fees.

Section 8371(2) permits punitive damages for insurer bad faith; evidence of mental suffering caused by a refusal to pay benefits may be considered as evidence of harm.

Odgers v. Progressive Northern Insurance Company · filed 2023-11-01(2)

Under Pennsylvania law, if the insurer has acted in bad faith, punitive damages may be awarded against the insurer. ... To the extent Plaintiff intends to introduce evidence of mental suffering and emotional distress in the context of the harm caused by Defendant's refusal to pay benefits, Defendant has presented no basis for the exclusion of such evidence. Therefore, Defendant's Motion is properly denied.

Section 8371(1) does not permit interest to be calculated on a compounded basis.

DeVincenzo, D. v. Erie Insurance Exhange · filed 2025-10-17(1)

As to the question of whether, or not, Section 8371 permits an award of interest calculated on a compounded interest basis, we find that it does not.

Section 8371 permits punitive damages against an insurer for statutory bad faith.

COLLINGS v. STATE FARM FIRE AND CASUALTY COMPANY · filed 2022-04-29

Plaintiff conflates his statutory claim of bad faith pursuant to 42 Pa. Cons. Stat. § 8371, which provides for an award of punitive damages against an insurer, with his common law breach of contract claim, which does not permit punitive damages.

Section 8371 provides court costs and attorneys' fees for an insurance bad faith claim.

Irving v. Allstate Indemnity Co. · filed 2000-05-03

Because Pennsylvania’s statute governing bad faith claims in insurance actions, 42 Pa.C.S.A. § 8371, includes court costs and attorneys' fees, the costs and fees under that claim would be included in the amount in controversy.

Section 8371 permits punitive damages for statutory bad faith.

Weir v. Progressive Advanced Insurance Company · filed 2025-10-02

In addition, Plaintiff seeks punitive damages in both his statutory bad faith claim alleged-in Count Il and in his fraud claim alleged in Count Ill, and it well-settled that punitive damages are available in a statutory bad faith action in Pennsylvania and must be considered when determining the amount in controversy.

A court may stay a Section 8371 bad faith claim pending appraisal when the insurer has not yet denied the claim and the extent of any denial remains unresolved.

BUSSIE v. AMERICAN SECURITY INSURANCE COMPANY · filed 2021-06-01

At the same time, we conclude that the bad faith claim is premature because ASIC has not yet denied Plaintiff’s insurance claim and the extent to which it may ultimately deny her claim will not be resolved until completion of the appraisal process. We therefore conclude that the most appropriate course of action at this point in time is to stay the bad faith claim pending completion of the appraisal process.

A Section 8371 claim based on denial of benefits is premature when the benefits are not yet due and the insurer has not denied them.

GRABER v. WESTFIELD INSURANCE COMPANY · filed 2024-08-23

The Amended Complaint does not allege that Defendant actually denied her benefits that she is entitled to under the Policy because she had not yet completed the repairs on her home. However, given that she represents that she has since completed repairs, as with Count 1, Count 2 will be dismissed without prejudice and Plaintiff will be permitted to reallege a claim of statutory bad faith in an amended complaint.

Section 8371 created a private cause of action for insurer bad faith and does not apply to conduct before July 1, 1990.

Liberty Mutual Insurance v. Paper Manufacturing Co. · filed 1990-11-19

Section 8371 creates new liability for the very same activities that prior to July 1, 1990, could not have been the basis for civil liability. In a nutshell, section 8371 creates a new cause of action for bad faith conduct. It, therefore, cannot be applied retroactively.

Section 8371 does not apply retroactively; an insurer may be liable for separate bad faith acts after July 1, 1990, but merely reaffirming an earlier denial is insufficient.

Lombardo v. State Farm Mutual Automobile Insurance · filed 1992-02-27

I find the approach developed by my colleagues persuasive and will adopt it as my own. For purposes of applying section 8371, one must look to the date on which the defendant insurance company first denied the insured’s claim in bad faith. If that date is prior to July 1, 1990, the insured’s claim under section 8371 is barred. If the insurer denies the claim prior to July 1,1990 and then reaffirms that denial after July 1, 1990, the insured’s claim is still barred. If the insurer denies the claim before July 1, 1990 and then undertakes additional acts of bad faith, the insurer can be held liable for those additional acts under section 8371 if they acts occur after the July, 1990 enabling date.

Section 8371 applies prospectively and does not reach bad-faith conduct occurring before its effective date.

Boland v. Nationwide Mutual Insurance · filed 1991-01-11

In summary, we find no act or omission made by defendant-insurer constituting bad faith after the effective date of section 8371. Any such alleged bad-faith practices occurring before that date are irrelevant and beyond the prospective reach of the statute.

Section 8371 applies prospectively from July 1, 1990 and does not reach actions taken before its effective date.

American International Underwriters Corp. v. Zurn Industries, Inc. · filed 1991-06-28

Given the unassailable conclusion that the section is not retroactive, it would be internally inconsistent, as well as bad policy, to construe the statute as suggested by Zurn.

Section 8371 applies prospectively, so it does not support a bad faith claim based on conduct before its effective date.

Dallastown Borough v. Pennsylvania National Mutual Casualty Insurance · filed 1992-08-06

In the case at bar, the transactions or events that could conceivably trigger legal liability under 42 Pa.C.S. §8371 are alleged in paragraph 50 to 54 in the plaintiff’s complaint and further, we can find no transaction of event with regard to the defendant’s conduct after the effective date which would trigger liability under the subject statute. Therefore, Count Three of the plaintiff’s complaint fails to set forth a cognizable claim for bad faith against the defendant under Pennsylvania law, and we grant the defendant’s demurrer as to Count Three.

Section 8371 applies to bad faith conduct occurring after its effective date even when the insurance policy predates the statute.

Laura Colantuno Steven Colantuno, H/w v. Aetna Insurance Company · filed 1992-12-01

We hold that since the alleged bad faith conduct occurred after the effective date of the statute, Colantuno has a valid cause of action, and should be afforded the opportunity to present their case against Aetna.