Some states require policyholders to complete the litigation over the contract portion of a UM / UIM claim before a bad faith or unfair claims practices action can commence. Blanchard v. State Farm Mut. Auto. Ins. Co.,575 So.2d 1289, 1291 (Fla.1991) National Sav. Life Ins. Co. v. Dutton,419 So.2d 1357, 1362 (Ala.1982), Lexington Ins. Co. v. Royal Ins. Co. of Am.,886 F.Supp. 837, 841-42 (N.D.Fla.1995).  Some states obligate the policyholder to go through arbitration before the bad faith claim … [Read more...]