“Questions involving ‘choice of law’ for insurance coverage issues frequently are overlooked when a new claim or lawsuit is filed,” Goldberg Segalla partner John I. Malone, Jr., writes for CLM Magazine — but neglecting “choice of law” analysis can lead to costly problems for insurers.

“Choice of law” refers to the rules used to establish which jurisdiction’s laws apply to a litigation. “Failing to include choice of law analysis in your toolbox can result in the payment of claims that would not be covered, overpayment, or, more significantly, defending your claims handling procedures from accusations of bad faith or unfair claims handling practices based on the law of the state that had nothing to do with the underlying claim,” John writes. He lists these “choice of law” rules and explain how they apply in different situations, citing example cases.

“Making a determination early in the consideration of a case can be a critical component of any accurate, and hopefully early, resolution of a claim,” John writes. “Similarly, questions involving tort claims (possibly including bad faith claims) would need to be considered under the law of the state with the most significant relationships to the alleged violations.”

Read the article here:

• “State of Affairs: Weighing Choice of Law Questions When Assessing a Claim or Loss,” CLM Magazine, June 2017