Insured Pleaded Necessary Elements To State Bad Faith Claim, Judge Rules

(November 1, 2016, 4:26 PM EDT) -- SIOUX FALLS, S.D. — Although the state of South Dakota does not recognize an independent cause of action for breach of the implied covenant of good faith and fair dealing, an insured has properly pleaded a claim for bad faith against his automobile insurance provider for failing to provide him with underinsured motorist (UIM) coverage, a federal judge in South Dakota ruled Oct. 25 (Greg A. Haanen v. North Star Mutual Insurance Co., No. 16-1007, D. S.D.; 2016 U.S. Dist. LEXIS 147435)....