Higman v. State Farm Mut. Auto. Ins. Cos., Civil Action No. 2:18-cv-00662, 2018 U.S. Dist. LEXIS 180282, at *1 (W.D. Pa. Oct. 22, 2018)

It is not dispositive of bad faith under Pa.R.C.P. § 8371 if a carrier does not immediately attend to a formal demand.

January 1, 2019

The plaintiff sued his carrier for bad faith under § 8371, claiming unreasonable delay in the handling of his UIM claim. The carrier had informed the plaintiff of its intent to further investigate the claim three months after a formal demand had been submitted. In granting the carrier’s motion to dismiss, the court found the two-month delay between notice of the ongoing investigation and the date suit was filed was not by itself dispositive of bad faith. In this case, the carrier was never afforded the opportunity to issue a coverage decision before suit was filed. The carrier’s failure to immediately respond to the demand, without more, warranted dismissal of the bad faith claim.

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