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Mickey Passman Discusses New Case Law on When Insurers Can Be Penalized for Denying Coverage

4.18.2018

Michael "Mickey" Passman unpacked the Illinois Appellate Court’s confirmation of Dominick’s Finer Foods v. Indiana Insurance Co.in his March 2018 Insurance Law IICLE Flashpoints column. 

At issue was the well-established rule that where there is bona fide dispute concerning coverage, statutory penalties should not be assessed against an insurer that denies a claim, even if the court later rejects the insurer’s position. This means that an insurer that wrongfully denies coverage should not be held liable for statutory penalties so long as the insurer had a reasonable basis for its decision to deny coverage. 

Read the full piece from the Illinois Institute for Continuing Legal Education here.