Maslo

INTRODUCTION

Appellant Ted Maslo was the insured on an automobile insurance policy 1 issued by respondent Ameriprise Auto and Home Insurance (insurer). After sustaining bodily injuries as a result of an accident caused by an uninsured motorist, Maslo filed a claim seeking the $250,000 limit on the policy’s uninsured motorist coverage. In response, the insurer demanded arbitration. After being awarded $164,120.91 by the arbitrator, Maslo filed a second amended complaint (SAC) against the insurer. The SAC alleged that the insurer breached the implied covenant of good faith and fair dealing by forcing the insured to arbitrate his claim without fairly investigating, evaluating and attempting to resolve it. The trial court sustained the insurer’s demurrer to the SAC and dismissed the complaint. This appeal followed. We conclude that the complaint adequately stated a claim for bad faith when it alleged that the insurer, presented with evidence of a valid claim, failed to investigate or evaluate the claim, insisting instead that its insured proceed to arbitration. We reject the insurer’s argument that its right to resolve a disputed claim through arbitration relieves it of its statutory…