Bad Faith Personal Liability of Claims Adjusters Arising Out of Claims - Handling Conduct

July 8, 2019

IADC Committee Newsletter

A recent decision from the Court of Appeals in the State of Washington, Keodalah v. Allstate Ins. Co., 413 P.3d 1059 (Wash. 2018)("Keodalah")has sent "shock waves within the claim industry" by holding that individual insurance adjusters can be held liable for "bad faith" with respect to their conduct in handling a claim, in addition to possible liability under the state's consumer protection statute. While Keodalah has been accepted for review by the Washington Supreme Court, it is nevertheless an important decision that insurance practitioners should follow. This article will address that decision, as well as decisions in other jurisdictions addressing this issue.

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