Significant Developments in Insurance Bad Faith Post- Louisiana Bag

Posted on: October 24, 2013 | Posted in: News

Defining satisfactory proof of loss as sufficient information to act on the claim, not the insurer’s right to demand a particular form of proof was one of the many developments of insurance bad faith policies highlighted by the Louisiana Bag case. On Wednesday October 23, 2013 the Insurance law Committee chair, Madeline “Nikko” Fischer hosted a CLE entitled Significant Developments in Insurance Bad Faith Post-Louisiana Bag. Ms. Fischer gave a full coverage explanation of the development of bad faith principles in regards to Louisiana insurance law, going back over 100 years and showing the evolution occurring over time and the historic cases which helped shape the policy. Louisiana’s insurance penalty statutes La. R.S. 22:1892 and La. R.W. 22:1973 were covered with regards to insureds and third parties, retaining a defense counsel, discovery of claims file, , and use of experts in bad faith litigation.  The Louisiana Bag case is important for insurance litigation because it highlights the responsibilities of the insurer to pay all parts of the claim that are not in dispute, to promptly investigate, to know the contents of the policy, and bear the risk of misinterpreting its own policy.