July 10th, 2006

Legislature Socks it to Recalcitrant Insurance Companies

Act 813 of 2006 says that if an insurer fails to timely pay, initiate loss adjustment or offer to settle a claim, it will be liable for a penalty of the greater of $1,000 or 50% of the amount otherwise due from the insurer, plus reasonable attorney fees and costs, but only if the insurer’s failure is “without probable cause” or is arbitrary or capricious.           

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