Bar Bulletin

Bar Bulletin

The First-Party/Third-Party Debate under the Insurance Fair Conduct Act

March 2018 Bar Bulletin

By Leonard Feldman and Ann Rosato

If you practice insurance law in Washington, you are likely aware of the vigorous debate among our federal judges regarding whether the Insurance Fair Conduct Act (IFCA) applies to third-party liability insurance policies or is instead limited to first-party policies.

Judge Marsha Pechman has repeatedly ruled that IFCA is limited to first-party insurance, while Judge John Coughenour and several other District Court judges have concluded that IFCA also applies to third-party liability insurance policies. More recently, King County Superior Court Judge David Keenan cited with approval and followed Judge Coughenour’s analysis. For details about this debate and related...

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