Crossley v. State Farm Mutual Automobile Insurance

Harwell, Chief Justice:

This is an action for breach of an insurance contract. The jury awarded respondent Clarence A. Crossley both actual and punitive damages based on its determination that appellant State Farm (State Farm) breached its implied covenant of good faith and acted willfully or in reckless disregard of respondent’s rights under the contract. State Farm alleges that the trial judge committed various errors. We affirm in part as modified, and reverse in part.

I. FACTS

Respondent applied for health insurance through State Farm on September 22,1988. He denied any adverse medical…