Judge: Disagreement Over Reserves, Investigation Does Not Establish Bad Faith

SOUTH BEND, Ind. - An insured breached the terms of a workers' compensation insurance contract by not paying the stated reserve amounts, an Indiana federal judge found Sept. 9, while holding that the insurer did not act in bad faith in its handling and investigation of the claim covered by the reserve fund (The American Insurance Co., et al. v. Liberty Homes Inc., No. 3:12-cv-00122, N.D. Ind.; 2013 U.S. Dist. LEXIS 128032).

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