No Disciplinary Action Does Not Equal Bad Faith
Close
 

No Disciplinary Action Does Not Equal Bad Faith

A surgeon sued his insurer alleging the carrier violated a New York Public Health Law immunizing good faith reports to the state board of professional medical conduct by filing a bad faith report about him with the board. The insurance company reported the physician for professional misconduct after denying or partially denying four claims against him. Following an  investigation, the disciplinary authority declined to impose any discipline against the doctor. On a certified question, the New York Court of Appeals was asked to resolve whether a private right of action existed within the reporting statute. The court said “no,” there was no private right of action because an action under these facts would not promote the provision's purpose and legislative scheme.

Haar v Nationwide Mutual Fire Insurance