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Court Rules Insurer that Waited To Take Coverage Position Until After Being Sued Acted in Bad Faith, Cannot “Cure”

By Greg Harper, Insurance Coverage, Thom Williams

A liability insurer failed to take a coverage position for over a year after its policyholder requested a defense. Two weeks after being sued, the insurer offered to defend, then argued its belated offer “cured” any breach of its duty to defend. On summary judgment, a Western District of Washington…

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