It's not often when a plaintiff attorney and an insurance company defending one of its policyholders agree in a courtroom. Rarer still is to have a suggested rule change be a "win" for all parties. However, in the case of "bad faith" insurance litigation and the urgent need for clarity for judges, lawyers and litigants, I believe there is such a situation.

Typically, bad faith lawsuits are only initiated when there is a significant, crippling jury award that goes above the policy limit purchased by an insured policyholder. After such a verdict, all of the parties—the policyholder, the injured party, the insurance company and plaintiff attorney—are thrust into what can be years of protracted litigation over the excess monetary award not covered by the insurance policy.