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Duty to Defend in Good Faith Triggered by Filing of Lawsuit

Insurance Coverage / August 23, 2022

On August 3, 2022, the United States Sixth Circuit Court of Appeals held in the unpublished case of Trident Fasteners, Inc. v. Selective Insurance Co. of South Carolina, that under Michigan law, a liability insurer’s Duty to Investigate, Duty to Process an Insurance Claim, and Duty to Negotiate Settlements, in good faith does not arise until the filing of a lawsuit against the insured or an agency demand letter to the insured that is the functional equivalent of a complaint.

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