Genuine Dispute Over Workers' Compensation Reduction From Uninsured Motorist Benefits Negates Bad Faith
Posted by Haight Brown & Bonesteel LLP on Mar 5th 2019
December 20th, 2018 In Case v. State Farm Mutual Automobile Ins. Co., Inc. (No. B281732, filed 11/21/18, ord. pub. 12/18/18), a California appeals court held that the allowable reduction from uninsured motorist (UM) benefits for “payable” workers’ compensation benefits meant “eligible,” whether the insured sought the benefits or not. As a result, the court found that a genuine dispute over resolution of the insured’s workers’ compensation claim negated a claim for bad faith delay in payment
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