A Pennsylvania court ruled that bad faith insurance claims only apply to how insurers handle claims, not to deceptive sales practices. The court also clarified that consumers don't need to prove they reasonably relied on false statements to win Consumer Protection Law cases. For subcontractors, this means bad faith claims against insurers must focus on claim denial or mishandling, not misleading sales tactics, and consumer protection claims have a lower bar to clear.
Bad faith insurance claims are limited to claim handling disputes—sales misrepresentations are handled separately under consumer protection laws