Where an insured fails to plead allegations of bad faith with specificity, such claims will be dismissed.

Federal courts use a two-part analysis when considering a Rule 12(b)(6) motion: (1) separating facts averred from legal conclusions asserted and (2) whether the facts alleged are sufficient to show a plausible claim for relief. Bad faith claims require a showing of a frivolous refusal to pay insurance proceeds, and negligence or bad judgment on the part of the insurer is insufficient to prove such claim. "Bare-bones" allegations lacking any specific factual support will result in dismissal.

Case Law Alert - 2nd Qtr 2011