The Eleventh Circuit recently affirmed that Nationwide acted in bad faith by refusing to settle a claim against its insured for the policy limits of $100,000, exposing the policyholder to a $5.83 million verdict. The evidence at trial indicated that Nationwide knew its insured could be liable for damages in excess of the policy limits, but failed to even respond to a reasonable settlement demand in a timely fashion. This case serves as a cautionary tale; by failing to offer up its relatively low policy limits to settle the claim, Nationwide not only exposed its insured to an excess verdict, it exposed itself to millions of dollars of damages by acting in bad faith.
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Jul 11, 2017
Bethany L. Barrese