No Bad Faith for not paying for car warranty
When Pitts' car was totaled, he got his insurance company to get him another. But his totaled car had a full powertrain warranty on it, while his replacement car did not. He figured that cars with warranties were worth more than cars without them. The insurer claimed that the warranty was not covered as the policy limits liability to the lesser of actual cash value or cost of replacement. Since the matter was undecided, and there was an arguable basis for the denial of the claim, the summary judgment to the insurer on the bad faith claim was affirmed.
Pitts v. West American Insurance Company
