Category Archives: Insurance Denial

Sometimes insurance companies don’t serve their insured as they should. Here’s stories of insurance denial from our insurance bad faith attorneys.

Insurance Company Wants to Walk Away from Controversial Insured

An insurance company wants out if its policy with the insured, a controversial caffeinated alcohol drink, according to the insurer’s request for declaratory judgment in federal court. Selective Insurance claims it does not have a duty to defend or indemnify Phusion Projects from lawsuits over Phusion’s “Four Loko” brand beverage. Families of several people filed suit after their loved ones died from symptoms linked to the alcohol beverage. One lawsuit from a victim’s father says that one can of 23.5 oz. Four Loko is 12 percent alcohol, contains as much alcohol as five to six 12 oz. cans of beer and as much caffeine as two cups of coffee. In addition, the beverage contains wormwood, which is a banned ingredient of absinthe. The father’s son shot himself in the head after drinking Four Loko. Selective Insurance claims that Four Loko is an inherently dangerous and defective product. The insurance company…
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Insurance Company Tries to Sue Its Own Insured to Recover Settlement Pay-Out

Is it bad faith for an insurance company to sue its insured in an attempt to recover what it paid out in a settlement on behalf of the insured? Attorneys for the insured think so in one particular federal court case, which the insurance company is now backing away from without comment. In November 2008, a Utah State University fraternity freshman died from over-drinking during a fraternity event. The victim’s parents sued four members of the fraternity after their son’s death. RSUI, Inc., (RSUI) insured the fraternity and its members and settled the wrongful death suit on behalf of its insured. RSUI then sued the four fraternity members for reimbursement on what it paid in the settlement. The insurance company wanted $50,000 from each defendant. Defense attorneys argued that RSUI breached its good faith agreement by suing its own policyholder. One Florida lawyer said that an insurance company cannot subrogate…
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