Keodalah v Allstate Insurance Professionals Beware Presenters Learning Objectives Examine the facts surrounding Keodalah v Allstate Insurance Company Identify the implications of the decision ID: 763050
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Keodalah v. Allstate: Insurance Professionals Beware
Presenters
Learning Objectives Examine the facts surrounding Keodalah v. Allstate Insurance CompanyIdentify the implications of the decisionDevelop processes that will protect insurers and their employees Manage the risk to individual adjusters
Quick Question Have you been accused of bad faith, or know of someone who has been accused of bad faith?
Keodalah v. Allstate Court of Appeals of the State of Washington, Division One, Case no 2:15-cv-01412-March 26, 2018 “Facts do not cease to exist because they are ignored.” -- Aldous Huxley, 1894-1963, novelist, philosopher
The Basis of the Court’s Holding
Threshold for a Finding of Bad Faith - WA
Influence on Other Jurisdictions Similar laws: California, Texas, Alaska Other examples of adjusters held personally liable
Plaintiffs’ Bar Strategies
Expansion to Other Involved Parties
Implications for Claims Professionals If sued personally, may need to declare when seeking credit Employer should respond due to vicarious liability conceptSelf-employed adjusters required to rely on their client or own insurance
Protective Strategies -- Insurers Emphasize good claim handling practices Provide indemnification for adjusters Hire out of state staff and independent adjusters
Acting in Good Faith -- Adjusters Communicate clearly and in a timely manner Review coverage carefullyKeep the insured informed throughout the processMaintain a strict diary system and stick to it Note time requirements in each file and in a diaryUse checklists to ensure that all required work is completed Respond promptly and always return phone calls Be objective in investigation Be aware of bad-faith set-up efforts by plaintiff’s attorney Pay valid claims promptly Document your actions and conversations Practice judicious use of Reservations of Rights
Managing the Risk – Claim Professionals
Resources Cases for review: Court of Appeals of the State of Washington, Division One, Case no 2:15-cv-01412-March 26, 2018Bock v. Hansen, 225 Cal.App.4th 215 (2014) Feizbakhsh v. Travelers Commercial Insurance Company, 2016 WL 8732296Joan Elaine Murray, V. Allstate Vehicle And Property Insurance Company And Brandon Joseph Chisolm, 2018 WL 5634949 (October 30, 2018) C.P. ex rel. M.L. v. Allstate Ins. Co ., 996 P.2d 1216 (2000)
Thank you for your time today! This program was brought to you by collaboration of the PNW Chapter and the Coverage, Litigators, Educators, and Witnesses Interest Group.
Contact Information Paul Rosner, JD, CPCU Attorney | Soha & Lang, PS Rosner@sohalang.com (206) 654-6601 1325 Fourth Avenue, Suite 2000 Seattle, WA 98101-2570 Terri A. Sutton, CPCU, AU Associate | Cozen O'Connor TSutton@cozen.com (206) 224-1272 999 Third Avenue, Suite 1900 Seattle , WA 98104