SW+B recently won a motion to bring a claim under the 2008 statute that prohibits an insurance company from unreasonably delaying or denying payment.
In the summer of 2006, SW+B’s client was struck by a hit and run driver while riding his bicycle. The impact launched the rider over 55 feet and resulted in grievous bodily injury including multiple spinal fractures and a debilitating head injury.
Despite the fact that SW+B’s client had uninsured motorist coverage in the amount of $1,250,000 with State Farm, State Farm refused to make any significant payments until nearly three years after the accident.
SW+B is now pursuing an action on behalf of the cyclist and against State Farm for bad faith and unreasonably delay. The statute that became effective August 2008 allows an insured to recover double the benefits due and attorneys fees when an insurance company unreasonably delays or denies payment.
State Farm argued that the cyclist should not be able to bring a claim under the statute, because the accident occurred before the statue was effective. SW+B argued that the cyclist should be able to bring a claim under the statute, because State Farm continued its unreasonable delay for over a year after the statute became effective. The Court agreed with SW+B. Please send us an email if you'd like to see a full copy of the Court’s order.
