(USA Herald) – As a policyholder, you expect your insurance company to have your best interests in mind. Unfortunately, some insurance companies put profits before their clients, leading to bad faith conduct. In cases of bad faith, policyholders can hold their insurer accountable in court. The following seven real-life examples of high bad faith insurance settlement amounts show the impact of insurer misconduct.
1. Matson Terminals v. Home Insurance Co. – settlement: $33.65 million
The Home Insurance Company denied coverage for a $10 million earthquake claim, leading to a lawsuit. A California jury found the refusal to provide support based on a policy exclusion was in bad faith. The jury awarded $11 million in punitive damages, and an appeals court affirmed the award, including $23.5 million in compensatory damages. The appeals court also held that the insurer led the policyholder under the false pretense of coverage, exacerbating the bad faith.
2. Vann v. The Travelers Insurance Company – award: $26.5 million
