5. Boicourt v. Amex Assurance Co. – award: $2,006,000
The insurance carrier, Amex Assurance Company, initially refused in bad faith to disclose policy limits after a vehicle accident severely injured a young boy. The initial settlement of $2 million was pursuant to a policy that provided only $100,000 in coverage.
6. Mazik v. GEICO General Insurance Co. – award: $1.3 million
An appellate court found that GEICO disregarded information showing a permanent, painful injury suffered by Michael Mazik after his vehicle collided with another. The court affirmed a decision by the LA County Supreme Court to award Mazik $1 million in punitive damages for the bad faith breach of its insurance contract, plus additional compensatory damages and legal costs on appeal.
7. Major v. Western Home Insurance Co. – award: $450,000 non economic damages & $220,359.55 in economic damages
Western Home Insurance Co. agreed to repair or replace the Majors’ home to the policy’s limits of liability after their home was destroyed in the Cedar Fire in 2003. The Majors sought legal counsel when Western initially failed to pay mortgage benefits or the full amount of personal property benefits. The Court of Appeal held that the bad-faith cause of action is primarily designed to remedy “financial loss.” However, the court also noted that bad faith conduct can cause emotional distress and the Majors had presented evidence that Western’s conduct had caused them emotional distress. Therefore, the jury awarded the Majors $450,000 in noneconomic damages for emotional distress, in addition to $220,359.55 in economic damages for the underpayment of benefits. The case is an example of how insurance companies can be held accountable for bad faith conduct that causes both financial loss and emotional distress to policyholders.
