The Florida Supreme Court came out strongly against insurance companies that delay, deny and low-ball legitimate claims in the recent decision, Fridman v. Safeco Ins. Co. of Ill.
At issue on appeal before the court was whether an auto insurance company could file a confession of judgment on the eve of trial and avoid a bad faith insurance claim. The answer was no.
This was a case where an insurance company dragged its feet for four years, denying an uninsured/underinsured motorist (UM/UIM) claim. Even when the plaintiff filed notice of intent to file a bad faith lawsuit, the company didn’t respond. And then when the plaintiff filed the lawsuit, the company still didn’t respond, and nor did the company answer when plaintiff offered to settle for the policy limits of $50,000. It wasn’t until a month before the trial was scheduled that insurer sent a confession of judgment and a $50,000 check. Continue reading →