October 21, 2019

In a highly anticipated decision, the Supreme Court of Washington held that insurer-employed adjusters cannot be held liable for statutory bad faith claims. The case is Moun Keodalah and Aung Keodala v. Allstate Insurance Company, Tracey Smith., and John Doe Smith, P.3d – (2019, 2019 WL 4877438 (Wash. Oct. 3, 2019).

In 2007 the vehicle Moun Keodalah was driving collided with an uninsured motorcyclist, killing the motorcyclist and injuring Keodalah. The police investigation of the scene revealed that the motorcycle had been traveling faster than 70mph in a 30mph zone, and found that Keodalah was not using his cell phone at the time of the accident. Allstate hired an accident reconstructionist who also found that the motorcyclists excessive speed was the cause of the accident. Keodalah asked for the uninsured motorists policy limit of $25,000. Allstate, functioning off of the analysis by its claims adjuster that Keodalah was 70% at fault, only offered $15,000 to settle the claim. Keodalah refused and requested the policy limits.