Central Manufacturers Mutual Insurance v. Graham

1. Where a fire-insurance policy insures against loss or damage to personalty, caused by fire or water used in extinguishing or cheeking fire, and damages are claimed under such policy by the insured, a failure upon the part of the insurance company to investigate the alleged loss or damage, and a denial upon the part of the company of any liability whatsoever upon the ground that such loss or damage was not recoverable under the policy, but arose from some cause not covered by the policy, may be considered as evidence of bad faith on the part of the insurance company in refusing to pay for…