Pierce v. Capitol Life Insurance Co.

Opinion by

Judge MARQUEZ.

Defendant, Capitol Life Insurance Company, appeals from a judgment, entered upon a jury verdict, finding that it acted in bad faith towards its insureds. We affirm.

In early December 1977, plaintiffs, William E. and Beverly J. Pierce, were in the process of setting up a business, the Vail Insurance Agency, of which they were the only employees. On or about December 16, 1977, plaintiffs became insured, up to $500,000 for each covered person, under a group medical insurance policy issued by defendant to the Vail Insurance Agency. The policy contained a provision which…