M.M. v. Allstate Insurance Company, MIA No. 27-1001-12-00005 (July 16, 2012).
Insurer acted in bad faith by not investigating a claim on the grounds that a pollution exclusion applied when that exclusion did not in fact apply. The MIA found that Allstate acted in bad faith by refusing to investigate a claim on the grounds that it believed it did not have to pay the claim under an exclusion. Upon hearing the circumstances of the claim, Allstate immediately concluded that the claim fell under a pollution exclusion. Allstate therefore did not investigate