A federal district court in New Mexico ruled that an eye center was not entitled to interrupt coverage of covid-19 under a policy issued by a CNA Financial Corp. unit, but said that a claim of bad faith against the insurer may continue.
Albuquerque Ambulatory Eye Surgery Center LLC brought an action against the CNA unit Transportation Insurance Co. ] Albuquerque Ambulatory Eye Surgery Center LLC v. Transportation Insurance Co.
Fees against the insurer included breaches of good faith and fair trade. its policy and that it is "reasonable to close the allegations of the presence of coronavirus in the insured premises, alone, are insufficient to trigger coverage under the insurance." [1
"The complainant claims that the defendant" did not follow up on the insured, request an interview or visit the covered place. (The defendant) also failed to examine plenty of publicly available and readily available information about (the allegation), ”the verdict said, refusing to dismiss the accusation of bad faith.
Lawyers in the case did not respond to a request for comment.