DECEMBER 2013 BAD FAITH CASES: INSURANCE ISSUED PURSUANT TO FEDERAL NATIONAL FLOOD INSURANCE PROGRAM PRE-EMPT STATE LAW STATUTORY BAD FAITH CLAIMS (Eastern District)

In Rudi v. State Farm Fire & Cas. Co., State Farm has issued flood dwelling insurance that was federally underwritten, in a Standard Flood Insurance Policy administered  by it pursuant to the National Flood Insurance Program (“NFIP”). Allstate argued that the insureds’ statutory bad faith claim was foreclosed because federal law preempts state law extra-contractual claims related to NFIP policies.  The insureds did not oppose Allstate’s summary judgment motion on this point.

Date of Decision: November 27, 2013

Rudi v. State Farm Fire & Cas. Co., No. 2:11-cv-04362-WY, UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA, 2013 U.S. Dist. LEXIS 168618 (E.D. Pa.  November 27, 2013) (Yohn, J.)