Insurer Acted In Good Faith In Seeking Release For Insured, Panel Rules

Mealey's (December 20, 2016, 2:33 PM EST) -- CINCINNATI — An insurer did not act in bad faith in declining to settle a wrongful death lawsuit for policy limits without a release of all claims against its insured because under Kentucky law, the insurer was required to protect its insured from an excess judgment while attempting to settle the claim with the third-party in good faith, a Sixth Circuit U.S. Court of Appeals panel ruled Dec. 15 (Joseph Shaheen, ancillary administrator of the Estate of Nadia Shaheen, deceased, v. Progressive Casualty Insurance Co., No. 15-5863, 6th Cir.; 2016 U.S. App. LEXIS 22422)....