Washington State’s Supreme Court to Decide Insurance Adjuster Liability Case

In Washington State, an Allstate customer claims both the insurance company and their adjuster acted in bad faith when it attempted to settle his underinsured motorist claim for less than the policy limit following an accident. The adjuster assigned to the claim reportedly determined that the insured was partially at fault for the accident because he was on his phone and ran a stop sign. The evidence, however, showed that both the police and Allstate’s own accident reconstructionist determined that the insured was not on his phone and had stopped at the stop sign in question. At the liability trial, the jury determined that Allstate’s insured did not contribute to the accident in any way and awarded him damages. Allstate’s insured filed suit against both Allstate and the adjuster for violations of Washington’s Consumer Protection Act  While bad faith claims against insurance companies aren’t unheard of, this is the first time the Washington Supreme Court has had the opportunity to rule on whether an adjuster can be held individually liable for bad faith and violations of the Consumer Protection Act. As many states have similar consumer protection laws, all eyes are on Washington as we wait to see if their high court allows the case to move forward.