Insurer’s Denial Of Duty To Defend Constituted Bad Faith, Panel Says In Reversal

(February 21, 2020, 11:26 AM EST) -- TACOMA, Wash. — A Washington appeals panel on Feb. 19 held that a homeowners insurer’s failure to evaluate an underlying complaint, the homeowners insurance policy and applicable law to determine whether coverage was triggered “was unreasonable and frivolous” and, therefore, its refusal to defend its insured constituted bad faith and violated Washington’s Insurance Fair Conduct Act (IFCA) and Consumer Protection Act (CPA), reversing and remanding the lower court’s ruling in favor of the insurer (John William Webb, et al. v. USAA Casualty Insurance Company, No. 52210-1-II, Wash. App., Div. 2, 2020 Wash. App. LEXIS 375)....