No Bad Faith Where Plaintiff Failed to Pay Premium and UIM Policy Was No Longer In Effect

In the case of Gonzales v. State Farm Mutual Automobile Insurance Company, No. CV 20-4193 (E.D. Pa. Oct. 21, 2021 Schmehl, J.), the court granted summary judgment in favor of the carrier in a breach of contract and bad faith claim in the UIM/medical payments context.

The court noted that summary judgment was entered in favor of the carrier on the basis that the insured failed make all payments necessary to keep the policy in effect.

Given that the policy was not in effect at the time of the incident at issue, the court found that the carrier could not have breached its coverage obligations.

The court noted that, given that the carrier was granted summary judgment on the breach of contract claim, it followed that carrier was also entitled to summary judgment on the bad faith claims as well.

Anyone wishing to review a copy of this decision may click this LINK.


I send thanks to Attorney Lee Applebaum, the writer of the excellent Pennsylvania New Jersey Insurance Bad Faith Case Law blog for bringing this case to my attention. Attorney Applebaum is with the Philadelphia law firm of Fineman Krekstein & Harris.