In the Kentucky bad faith case of Wright v. Allstate Property and Casualty Insurance Company, Allstate refused to turn over its claim file except for a two-month window, even though the claim duration was from 2014 to 2019. MFP filed the case against Allstate for unfair claims settlement practices act violations, alleging delays in making a fair offer to Mr. Wright who was seriously injured in a car crash. The trial Court rejected Allstate’s argument and ordered Allstate to produce the entire file, which would include those portions of the claim file that was created after the bad faith claim was initiated.
The ruling follows Kentucky law that says claims files are potential evidence that the claimant lawyers should get to see, because they can provide proof of bad faith. An insurance company is required by law to record its activities in the claim file. This can provide an excellent record of what the Insurance company was doing, what they were really thinking, and what they were NOT doing.