In State Auto Property & Casualty Insurance Co. v. Hargis, 2015 U.S. App. LEXIS 7475 (6th Cir., May 6, 2015) the United States Court of Appeals for the Sixth Circuit, interpreting Kentucky law, refused to recognize an insurer’s reverse bad faith claim against a policyholder that intentionally set fire to the insured property in order to collect insurance proceeds. The insurer brought a declaratory action to declare the policy void. The policyholder asserted counterclaims for bad faith.
The policyholder filed an $866,000 claim under her …
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