Insurer’s Reserves Ruled Discoverable In Case Alleging Bad Faith

For those who have read my broadsides aimed at federal courts that don’t provide copies of all their opinions on their public websites, you just know I’m going to link to a post that raises the same issue, albeit in a pretty benign way.    

This post also analyzes an issue I blogged about here: when are an insurer’s reserves discoverable?  In the case analyzed, Bernstein v. Travelers, the judge ordered the insurer to produce records of its reserves because they were relevant to the question of whether the insurer had unjustifiably delayed payment in bad faith.

The last paragraph of the post contains a link to a pretty good report on another bad faith case:  Maiden Creek T.V. Appliance Inc. v. General Casualty Insurance Co, where discovery of reserves was also ordered.  As the report points out, General Casualty didn’t lose the entire discovery motion: the court said that letters between a lawyer and the insurer’s investigators were work product and protected by attorney-client privilege, and were not discoverable.

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