If you successfully sue an insurance company for bad faith, you are entitled to monetary damages. In addition to compensatory damages (your actual losses), you may be awarded punitive damages, which are meant to punish and deter the wrongdoing. When do punitive damages apply? How are they calculated? Understanding insurance bad faith

When you enter into a contractual relationship with an insurance company, you expect that they will honor the terms contained in their policy. At the time you decide to accept their offer for coverage, they made promises to you that you would be protected in the event that something should happen. Unfortunately,

Some insurance companies offer lifetime disability benefits.  They usually come at an additional fee (or premium) and are attached to the policy as an “endorsement” or “rider” to the policy.  But not all lifetime coverage is created equal.  Some policies – usually those that were issued in the 1980’s or 1990’s – merely continue your benefits

Earlier this year, the Supreme Court provided additional guidance on punitive damage awards in insurance bad faith actions.  The decision, Thomas Nickerson v. Stonebridge Life Insurance Company (June 9, 2016) 63 Cal.4th 363, held that the ratio of punitive damages must include an award of Brandt attorneys’ fees in its calculation.  Nickerson involved a denial of medical benefits under

The state of California has proposed changes to insurance jury instructions. The impact of these changes could have a negative effect on consumers. Bad Faith Litigation In California, bad faith litigation occurs when an insurance company refuses to honor its obligations under a policy. This means that they are refusing to pay for certain

Most of us are covered by disability policies through our employers.  Premiums are paid by payroll deductions and coverage is described in a summary plan description.  Those policies (subject to a few exceptions discussed below) are governed by federal law, specifically, the Employee Retirement Income Security Act of 1974 (“ERISA“).  These laws

As a homeowner, you know that you have to have insurance to protect your assets. Your home is a significant investment, and you have to make sure you have coverage if something happens that results in a catastrophic loss. When you obtain an insurance policy, the policy will clearly state what is

From Bruce Springsteen’s legendary voice to Taylor’s Swift’s legendary legs, when it comes to insuring their most valuable “assets,” it seems that celebrities are as cautious as the rest of us.  The most recent example of a superstar looking for protection against unforeseen maladies is world-famous soccer player Christiano Ronaldo.   It’s

If you were to ask someone to name the biggest meteorological threat California faces, years ago they would likely have replied, “Earthquakes”. However, in recent years, the two threats that top the list are the related issues of drought and wildfire. Many people incorrectly assume that they have little to no legal