Insurance
Aug. 22, 2003
Insurer's Duty to Investigate Is Fundamental Principle
Focus Column - Insurance Law - By Kirk A. Pasich - Insurance carriers must conduct a thorough investigation before they deny a claim. As the state Supreme Court has held, "[I]t is essential that an insurer fully inquire into possible bases that might support the insured's claim ... . [A]n insurer cannot reasonably and in good faith deny payments to its insured without thoroughly investigating the foundation for its denial." Egan v. Mutual of Omaha Ins. Co. , 24 Cal.3d 809 (1979).
Insurance Law
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