Company asks judge to dismiss bad faith allegations in MDL virus


Law360 (Aug 24, 2021, 7:43 p.m. EDT) – Society Insurance Co. urged an Illinois federal judge to dismiss all bad faith claims against it in multidistrict pandemic business disruption litigation , claiming that she had never issued a denial of general coverage on COVID-19-related losses.

The carrier on Monday asked U.S. District Judge Edmond E. Chang to dismiss the bad faith allegations made under the laws of Iowa, Indiana, Minnesota, Tennessee and Wisconsin. The company said it had not acted in bad faith in issuing widespread denials and that each coverage decision was based on the specifics of individual claims.

Policyholders said the company wrongly refused to honor its coverage obligation by denying their coronavirus-related loss …

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