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INSURANCE LITIGATION: Superior Court holds that insured stated sufficient allegations of bad faith, CUIPA and CUTPA violations against her insurer

INSURANCE LITIGATION: Superior Court Holds That Insured Stated Sufficient Allegations Of Bad Faith, CUIPA And CUTPA Violations Against Her Insurer

The plaintiff filed a claim with her homeowner’s insurer after she sustained property damage from a furnace leak.  She was dissatisfied with the insurer’s resolution of her claim and filed suit for, among other claims, breach of the implied covenant of good faith and fair dealing, CUIPA violation and CUTPA violation.  The Court denied the defendant insurer’s motion to strike each of those claims.  The plaintiff alleged more than a mere disagreement between the parties regarding coverage for the property damage; she alleged that the insurer acted in bad faith by providing her false and misleading information that it was merging the subject claim with a prior claim, even though the agent knew such a merger was impossible.  The Court held that based on these facts, the plaintiff had sufficiently plead the alleged claims.  Streeter v. Liberty Mutual Fire Insurance Co., No. CV17-6071117; Dec. 26, 2018

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