The Homeowners Insurance Policy
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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
- Insurance Claims Library January 18, 2019
- The Principal Location of the Insured Risk Governs Coverage January 18, 2019
- If You Want a Staff of Insurance Claims Professionals go to The Insurance Claims Library January 17, 2019
- Insurance Fraud Takes Many Different Forms January 17, 2019
- How to Create a Staff of Professional Insurance Claims Handlers January 16, 2019
- Insurance is Essential Condition to a Lease January 16, 2019
- How an Insurer Can Provide Good Faith & Fair Dealing to All Insureds January 15, 2019
- Zalma’s Insurance Fraud Letter – January 15, 2019 January 15, 2019
- How to Create a Staff of Insurance Claims Professionals January 14, 2019
- Purchase of Insurance is a Waiver of Sovereign Immunity January 14, 2019
- How to Create A Staff of Insurance Claims Professionals January 11, 2019
- Love is Not Enough to Save Murderer from Jail January 11, 2019
- Hire Military Vets and Train Them January 10, 2019
- The Telephone Consumer Protection Act (TCPA) Exclusion January 10, 2019
- How to Overcome the Tight Employment Market by Training Your Personnel January 9, 2019
- Insurers Should Never Rely on Prosecutors to Defeat a Fraudulent Claim January 9, 2019
- Overcome the Tight Employment Market by Training Your Personnel January 8, 2019
- Trial Court’s Erroneous Instruction on Burden of Proof Requires New Trial January 8, 2019
- Everything Needed by the Insurance Claims Professional January 7, 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.
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/