The Great Jewel Theft
The Homeowners Insurance Policy
The Tiffany Kid
Arson for Profit
The Fraud Trained Adjuster
Barry Zalma, Inc.
One of the Top 50 Insurance Blogs
Note Zalma on Insurance is one of fifty top insurance blogs at https://blog.feedspot.com/insurance_law_blogs/
Zalma on Insurance
- A Christmas Gift for your Legal Staff December 6, 2019
- Sexual Assault is Never an Occurrence – No Coverage December 6, 2019
- Every Insurance Pro’s Request to Santa December 5, 2019
- Insurers Have the Right to Restitution from Criminal Who Caused it to Pay a Claim December 5, 2019
- Christmas & Chanukkah Gifts for Insurance Claims Pros December 4, 2019
- RTFP – Read the Full Policy December 4, 2019
- Malicious Prosecution Only Happens When a Person Is Maliciously Prosecuted December 3, 2019
- Insurer Effectively Sues Doctors for Fraud December 2, 2019
- Zalma’s Insurance Fraud Letter – December 1, 2019 December 2, 2019
- Insurance Claims Library – A Perfect Gift for Anyone Interested in Insurance November 27, 2019
- Where there is a Total Recovery at Law Equity Will not Interfere November 27, 2019
- A Christmas Gift Better than Chocolate Chip Cookies November 26, 2019
- Breach a Warranty and Lose Coverage November 26, 2019
- Happy Thanksgiving from Barry Zalma, Barry Zalma, Inc. and our family November 25, 2019
- Removal of Roof to Repair not Covered Cause of Loss November 25, 2019
- There is an Obligation for the Insured to Read an Insurance Policy November 22, 2019
- Insurance Claims Library November 21, 2019
- Evidence of Intent to Commit Life Insurance Fraud Appropriate to Prove Murder November 21, 2019
- Needed by Every Insurance Claims Professional November 20, 2019
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Zalma On Insurance — The BlogAfter more than 50 years acting as a claims person and insurance coverage lawyer I enjoy reading court decisions concerning insurance. The idea of this blog is to find new cases that are interesting to me and then write a summary. Some of the cases reviewed will be important. Some may be of first impression. Others will be totally unimportant. All will be interesting.
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DISCLAIMERThis Blog is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the publisher. The blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
Time to Rescind the Tort of Bad Faith
Insurance is, and always will be, a business of the utmost good faith. All parties to the insurance contract agree, in good faith and fair dealing, to do nothing to deprive the other the benefits of the contract. Insurance is, and always be, nothing more than a contract.
The insurer makes a promise to the insured that if a contingent or unknown loss occurs caused by a peril or risk insured against and not excluded, to pay the insured indemnity as promised by the contract up to the limits provided.
The insured promises to truthfully disclose the risks of loss faced by the insured, property owned by the insured, the business of the insured and/or the insured’s liability exposures. The insured also promises to honestly present a claim, prove the claim, and cooperate with the insurer in its investigation. If the parties to the insurance contract deal with each other fairly and in good faith the policy remains viable, claims are paid promptly and to the satisfaction of the insurer and the insured.
Only if a true tort occurs can the insured waive the contract action and sue in tort. Breach of contract, by centuries old tradition, is not a tort and cannot and should not be considered a tort. The Tort of Bad Faith has served its purpose and is now causing more problems than it solves. It is time the courts and state legislatures rescind the tort and return to common law contract damages.
Read about this and other insurance books by Barry Zalma at http://zalma.com/zalma-books/