Minnesota Life Insurance Co. v. Vasquez

The mortgage insurer in this bad-faith case took six months to pay off the insured’s mortgage because (1) the death certificate made coverage unclear and (2) the hospital took four months to produce the remaining medical records. Finding the insurer had knowingly engaged in an unfair or deceptive act, a jury awarded extra-contractual damages on top of the $41,000 mortgage the insurer paid after suit was filed. Applying a statutory cap, the trial court entered a reduced judgment for additional damages, mental anguish, and attorney’s fees, and the court of appeals affirmed.

Unquestionably, the…