An Arizona court has recently reduced the limit on damages in bad faith insurance litigation to a 1:1 ratio with compensatory damages. Given the regulatory role of punitive damage awards in bad faith litigation this seems like a bad idea. Potentially large punitive awards are necessary to regulate the insurance market because of the peculiar nature of its "pay now, claim later" system. Otherwise, insurers have no incentive to act in good faith.
https://mehrfairbanks.com/
https://mehrfairbanks.com/
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