Supreme Court Establishes Standards for Bringing Bad-Faith Claim Against Insurance Carrier

In a case of first impression, the Pennsylvania Supreme Court on Thursday ruled that a plaintiff bringing a bad-faith action against an insurance carrier does not need to provide evidence of self-interest or ill-will on the part of the carrier. The plaintiff just needs to show the lack of a reasonable basis for the carrier’s denial, and that the insurer was aware of the lack of a reasonable basis for the denial, or that the carrier recklessly disregarded the lack of a reasonable basis for the denial. Although the case dealt with a dispute over private health insurance coverage, the bad...