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9th Circuit reduces $2.5M bad faith award against GEICO to $1M

What factors do courts look at to determine when an insurance carrier's conduct is reprehensible enough to justify an award of damages based on bad faith?

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on December 06, 2017
The final amount of an award of punitive damages depends on how bad the insurer's conduct is. (Photo: Shutterstock)

This story is reprinted with permission from FC&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

The U.S. Court of Appeals for the Ninth Circuit has reduced a $2.5 million punitive damages award against GEICO Indemnity Company to $1,064,282.44 after finding, among other things, that its conduct had been only of “low to moderate reprehensibility.”

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