The 4th DCA of Florida recently held that higher insurance premiums and damages to an insured’s reputation are not examples of bad faith by the carrier in settlement of a covered claim within the limits of a liability insurance policy. In Freeman v. Cohen, the Court specifically held that a physician was not able to challenge the settlement of a medical malpractice claim within the limits of his insurance policy if the settlement was made within the limits of the policy and in “good faith.” Despite written objection by the defendant physician, cancellation of his insurance policy and release of the insurance company from “financial insurance obligations” in the defense of the subject medical malpractice claim, the insurance company was able to settle on the physician’s behalf.
Read the entire opinion by clicking here: Freeman v. Cohen Opinion
For more information on defending medical malpractice, nursing home and general liability matters in Florida contact Howard Citron at Citron & Associates, P.A. – www.citronlegal.com.
November 28, 2007 at 9:51 pm |
This is the same rule in Maryland. Interestingly, it is not the rule for legal malpractice cases because the lawyer must sign off on the settlement. We recently brought a legal malpractice case where the lawyer wanted a fee for the work the did on the file before committing legal malpractice and held the settlement hostage until we agreed to give him a fee.