Bad Faith Insurance Claims

Bad faith insurance claims have always been difficult because the insurance industry has routinely been able to hide behind restrictive laws designed to protect them from even egregious conduct. However, a case pending in Missouri may change this situation.
A Jackson county Missouri trial judge issued an order directing Allstate Insurance Company to produce records which the Plaintiff lawyers allege show how Allstate set up a claims payment system in the 1990s that shortchanges clients while earning huge profits. Despite the judges directive, Allstate refused, and drew a $25,000 per day fine from the judge. The fine, which began in mid-September is now approximately $2.4 million.
Last month, the Missouri Supreme Court ordered the documents produced, but Allstate, has stated it will not produce these records for public view no matter how much the court fines it.
Allstate contends the documents are trade secrets used to create company policies, methods and claims procedures.
The case stems from a car wreck seven years ago. Allstate’s insured struck the rear of a truck and severely injured the driver. He is suing Allstate for bad faith for refusing to pay the claim for years. The case is still pending.