Where the Insured Alleges only “Procedural” Claims-Handling Violations Proof of “Actual Harm” Required, and Remedies Limited
On 26 November 2008, the Washington Supreme Court issued its decision in St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., concerning an insured’s standing to sue for bad faith and violations of the Washington Consumer Protection Act (“CPA”) where the insurer properly denied defense and indemnity, but violated Washington claims-handling regulations concerning the timing of communications with the insured. The Court held that the insured could maintain a claim for improper claims-handling in the absence of a duty to defend or indemnity, but refused to apply a presumption of harm, and limited the remedies available. View full article (PDF).