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Aug. 12, 2026

Payment of benefits does not excuse unreasonable delay

A recent appellate decision makes clear that an insurer's unreasonable delay in paying benefits can trigger bad faith liability--even when the insurer eventually pays the claim in full.

William A. Foster

Associate
Pillsbury & Coleman, LLP

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Payment of benefits does not excuse unreasonable delay
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An insurance policy rests on a simple promise: when an insured makes a claim, the insurer will pay what it owes fairly and promptly. Many insurance disputes arise from the insurer's failure to pay benefits owed under the policy. But the unreasonable failure to timely pay benefits may, alone, support a bad faith claim against an insurer. This principle was recently reaffirmed in the Second District Court of Appeal's decision in Bornoff v. State Farm General Ins. Co.

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