Statutory Bad Faith Claim Proceeds; Common-Law Bad Faith Claim Fails, Judge Says

Mealey's (May 17, 2023, 9:24 AM EDT) -- DENVER — An insured’s statutory bad faith claim can proceed because questions of fact exist regarding the reasonableness of the insured’s actions in handling a claim for underinsured motorist (UIM) benefits; however, the insured’s common-law bad faith claim cannot proceed because the insured failed to show that the auto insurer knew that its conduct was unreasonableor acted in reckless disregard of whether its conduct was unreasonable, a Colorado federal judge said in partly granting the insurer’s motion for summary judgment....