INSURANCE LAW – Connecticut Superior Court allows bad faith claim but strikes CUIPA and CUTPA

2015-06-03 | Joseph M. Busher
jmbusher@jacksonokeefe.com

Category: Insurance

Joseph M. Busher

Based upon unproven allegations while considering a motion to strike, the Court allows a bad faith claim to proceed where it was alleged that an insurer misled a claimant to believe that a claim for water damage would be timely paid, but then undervalued the claim and refused to pay the full amount of the loss.  The Court found these allegations sufficient to state a claim for bad faith breach of the insurance contract.  As to the Connecticut Unfair Insurance Practices Act (CUIPA) and Connecticut Unfair Trade Practices Act (CUTPA) claims, the Court finds that the plaintiff failed to allege sufficient information to establish a general business practice of such conduct.  While the plaintiff alleged other complaints against the insurer, there were no factual allegations as to how those claims resolved, or whether there was any finding of CUIPA violations. Rams II v. Massachusetts Bay Ins. Co., (New Haven May 11, 2015)

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