Schreffler v. Pennsylvania Insurance Guaranty Ass'n

CAVANAUGH, Judge:

The sole issue presented in this appeal is whether the Pennsylvania Insurance Guaranty Association (PIGA) may be held liable for bad faith failure to settle a claim against the insureds of an insolvent insurer.

This case is brought by the administratrix of the estate of decedent who died as a result of an automobile accident. The administratrix sued the tavern, Keenan’s Tavern, at which the decedent had been drinking on the day of the accident for serving alcoholic beverages to decedent and his companion when they were visibly intoxicated. The tavern was insured by Amherst…