What Is The Time for Responding to a Defense Tender?
Insurers must acknowledge and act reasonably promptly upon notice of claim, Idaho Code §§ 41-1329(2) and (3), but there are no regulations, statutes or case law defining “reasonably promptly.”
Insurers must promptly provide a reasonable explanation of the denial of a claim. Idaho. Code §§ 41-1329(5) but there are no regulations, statutes or case law defining “promptly.”
Does Reserving Rights Create a Conflict of Interest?
An insurer cannot defend under reservation of rights without the insured’s permission. Boise Motor Car Co. v. St. Paul Mercury Indem. Co., 112 P.2d 1011, 1016 (1941).
Does a Reservation of Rights Create Additional Duties?
None found.
What Must Be Done If A Conflict of Interest Exists?
If the insurer insists on representing an insured under a reservation of rights without the consent of the insured, the insured is justified in employing independent counsel at the insurer’s expense. Boise Motor Car Co. v. St. Paul Mercury Indem. Co., 112 P.2d 1011, 1016 (1941).
Who Is Responsible for Fees of Independent Counsel?
The Insurer. Boise Motor Car Co. v. St. Paul Mercury Indem. Co., 112 P.2d 1011, 1016 (1941).
What Are Independent Counsel’s Obligations?
No cases found.
What Settlement Duties Exist?
No cases found.
What Actions May Result in a Claim for Bad Faith?
Idaho recognizes a bad faith cause of action for intentional and unreasonable denials or delays in the insurer’s payment of claims to an insured, White v. Unigard Ins. Co., 730 P.2d 1014, 1017 (Idaho 1986), and for negligent conduct by the insurer. Weldon Reynolds v. American Hardware Mutual Ins. Co., 766 P.2d 1243, 1245 (Idaho 1988).
Are Attorney’s Fees Recoverable in Insurer-Insured Dispute?
An insured is entitled to attorney’s fees if it recovers in an action to recover the proceeds of a claim that an insurer unjustly fails to pay within thirty days after proof of loss. Idaho Code § 41-1839.
Are Punitive Damages Recoverable in Insurer-Insured Dispute?
Punitive damages may be awarded when a defendant’s conduct is found to be malicious, fraudulent, grossly negligent or oppressive. Curtis v. Firth, 850 P.2d 749, 756 (Idaho 1993).
Alternative Coverage Options
An insurer may file a declaratory judgment action, however it must defend as soon as it finds an “arguable potential” for a claim under the policy. Hoyle v. Utica Mutual Ins. Co., 48 P.3d 1256 , 1260 (Idaho 2002).
Relevant Statutes
Declaratory Judgment – Idaho. Code § 10-1201.
“Courts of record within their respective jurisdictions have the power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. No action or proceeding shall be open to objection on the ground that a declaratory judgment or decree is prayed for. The declaration may be either affirmative or negative in form and effect, and such declarations shall have the force and effect of a final judgment or decree.”
Idaho does not allow for a private right of action for violations of its Unfair Settlement Practices Act. White v. Unigard, 730 P.2d 1014, 1021 (Idaho 1986).