In a move that will put insurance companies under greater scrutiny,the Superior Court has ruled in an issue of first impression that Section 8371 goes beyondthe denial of a claim to include an evaluation of an insurer’s “investigativepractices” for evidence in a bad faith claim.

“[W]e find that the broad language of Section 8371 was designedto remedy all instances of bad faith conduct by an insurer, whether occurring before,during or after litigation,” Judge Frank J. Montemuro wrote for the three-judgepanel.

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