Belated Reservation Of Rights Can Constitute Bad Faith, Judge Rules

Belated Reservation Of Rights Can Constitute Bad Faith, Judge Rules

PITTSBURGH - An insured has sufficiently alleged that it detrimentally relied on its insurer's initial assurance of coverage in an underlying employee injury case, a Pennsylvania federal judge found June 4, denying the insurer's motion to dismiss a bad faith counterclaim against it related to the insurer's subsequent issuing of a reservation of rights letter (Greenwich Insurance Co. v. BBU Services Inc., et al., No. 2:12-cv-00291, W.D. Pa.; 2013 U.S. Dist. LEXIS 78070).

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