Insurance Bad Faith: The 'Set Up Myth'

photo-2icWendichen testifying in insurance bad faith cases, I frequently encounter allegations to the effect that the carrier has been set up by the insured and his attorney and/or the third-party claimant and his attorney. Such allegations are generally accompanied by an acrimonious charge of foul play, charade, dirty pool, contrivance, and so on.

Much has been written about insurance bad faith and the alleged "set up." As one writer correctly observed:

No subject is more likely to stir up controversy between plaintiffs' lawyers and insurance companies than the honored and reviled …