Once liability and extent of damages under a policy are determined, bad faith action accrues even if breach of contract liability has not been found.

Once coverage liability and the extent of damages under an insurance policy have been determined, a bad faith action has accrued, even if there has yet to be any finding of breach of contract liability. This case involved an appraisal of the loss pre-suit where the damages were determined.

Case Law Alerts, 4th Quarter, October 2014