Insurer Paid Claim to Avoid Bad Faith; Reimbursed Because of Misrepresentation

The 10th Circuit Court of Appeals endorsed a clever way for an insurer to avoid a bad faith claim where there were potential misrepresentations in the policy application. In Evanston Insurance Company v. Aminokit Labs, Inc., the court affirmed a decision of the U.S. District Court for the District of Colorado, which allowed an insurer to settle a claim and pursue the insured for reimbursement of all the costs associated with the claim in a separate action.

Read the full alert by Anthony L. Miscioscia and Konrad R. Krebs here.