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Insurance Law

: INSURANCE LAW NOTES

Power to the People

By Richard T. Victoria

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The Pennsylvania Senate is considering a Bill that would put bad faith claims under 42 Pa.C.S. 8371 into the hands of juries.

Currently, PA law generally requires that the issues of insurer bad faith and the damages that flow from bad faith conduct are to be resolved by a judge. However, PA Senate Bill 745 proposes to change the term "court" as used in 42 Pa.C.S. 8371 to "trier of fact," which would permit juries to determine whether an insurer acted in bad faith and the type and amount of damages owed for such misconduct.


Needless to say, the PA Trial Lawyers Association favors the amendment, but insurers oppose it, fearing runaway juries and inflated settlements.

Thanks to my partner Joe Linehan for the tip on this bill.

Full post as published by INSURANCE LAW NOTES on June 06, 2007 (boomark / email).

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