Insurance companies generally have much greater bargaining power and resources than individual insureds When a claim by an insured against an insurance company fails to settle amicably and is followed by a lawsuit, the insured has few options should the insurance company behave unfairly or deceptively in the course of the litigation. The Washington Consumer Protection Act protects consumers from deceptive and bad faith acts by businesses, including insurance companies Although Washington courts have created a general exception disallowing CPA suits for acts occurring in the course of litigation, Washington case law has not directly or clearly addressed whether this litigation exception applies in the insurance context. This Comment argues that the CPA allows for a cause of action by insureds against insurance companies for bad acts occurring after a suit has been filed The rationale behind the litigation exception to the CPA does not apply to the insurance industry, and Washington statutes, regulations, and case law support allowing CPA suits for unfair or deceptive acts by an insurance company occurring in the course of litigation.
Kasey D. Huebner,
Notes and Comments,
In the Litigation Business: Insurance Company Liability for Acts Occurring in the Course of Litigation under the Washington Consumer Protection Act,
76 Wash. L. Rev.
Available at: https://digitalcommons.law.uw.edu/wlr/vol76/iss3/6