Anderson v. State Farm Mutual Insurance

Becker, A.C.J.

This decision reverses in part an order dismissing, on summary judgment, Sharon Anderson’s suit against State Farm for bad faith and Consumer Protection Act violations. The suit arose from State Farm’s failure to advise Anderson of underinsured motorist (UIM) coverage, and its handling of her UIM claim once she made it. We hold, as a matter of law, that an insurer commits bad faith and engages in an unfair claims settlement practice when it fails to disclose the existence of UIM coverage to an injured insured whose damages are substantial and whose account of the accident…