Insurance, +4
Insurance
USAA Bad Faith Auto Insurance Verdict: $114M Jury Award and 2026 Appeals
A Nevada jury awarded $114 million over a disputed UIM claim; punitive damages were later cut to $63 million as appeals continued in 2026.
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Review of Case Materials
Reviews records, documents, testimony, data, and other relevant materials and consults with counsel regarding technical issues related to the matter.
Provide Expert Analysis
Applies specialized knowledge and experience to evaluate the technical or professional issues involved.
Form Expert Opinions
Develops independent, supportable opinions based on the available evidence and relevant standards.
Prepare Expert Reports
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Insurance bad faith generally concerns insurer conduct that is unreasonable or undertaken without a proper basis in handling an insured's claim or contractual rights, although the legal standard varies by jurisdiction and type of claim. Depending on the applicable law and circumstances, allegations may involve unreasonable claim denial or delay, inadequate investigation, misrepresentation of relevant policy provisions, failure to communicate appropriately, or unreasonable settlement practices. A disagreement over coverage or claim value does not by itself establish bad faith.
A person evaluating lawyers for an insurance bad faith matter can consider whether the attorney is licensed and in good standing, has experience with insurance coverage and bad faith litigation, and has handled disputes similar to the one involved. It can also be useful to ask who will handle the case, what litigation or trial experience the lawyer has, how fees and costs will be structured, and how the lawyer assesses the strengths and weaknesses of the potential claim. State or local bar associations and certified lawyer referral services can provide additional resources for locating attorneys.
The elements and burden of proving insurance bad faith depend on the jurisdiction and the type of insurance dispute. Evidence may include the policy, claim file, correspondence, investigation records, adjuster notes, coverage communications, settlement activity, internal procedures, and testimony concerning the handling of the claim. The court or jury may evaluate whether the insurer's conduct lacked a reasonable basis or otherwise failed to satisfy the legal standard applicable to the particular claim, along with any required showing of causation and damages.
The sequence of events can show when notice was received, when information became available, what investigative steps followed, when coverage or settlement positions were communicated or changed, and how the insurer responded to the insured or claimant. An expert can reconstruct that timeline and explain how the documented actions compare with customary claim-handling practices, while the applicable law determines whether particular timing constitutes bad faith.
Insurance, +4
Insurance
Insurance, +2
Prepares clear, well-supported expert reports outlining methodology, analysis, findings, and opinions.
Provide Deposition Testimony
Explains findings and opinions under oath and responds to questioning during deposition testimony.
Testify in Court
Presents specialized findings and opinions clearly to judges, juries, arbitrators, or other decision-makers.
Claims manuals, internal guidelines, training materials, and written procedures can provide context for how an insurer expected claims to be investigated, documented, escalated, or resolved. They may be relevant to evaluating the insurer's claim-handling practices, but an internal procedure does not by itself establish the governing legal standard or prove bad faith. Expert analysis can compare those materials with the conduct documented in the claim file while leaving the applicable legal standard to the court.
Insurance, +3
Insurance
Bad Faith, +4
Insurance