Pierre Sterlin v. Commerce Insurance Company, 25 Mass. L. Rep. 124

Summary

The son was driving the insured's vehicle when he struck the car in which the passenger was riding. It was not until several months after the passenger sent the insurer a demand notice that payments were made to the passenger under the insured's policy. The superior court held that the insurer violated ch. 176D, § 3(9)(c) and (d) by failing to make a prompt and reasonable investigation. The insurer failed to interview parties and persons with knowledge of the facts of the accident, and it failed to give any credence to a State trooper's statement in a police report that the son had fallen asleep at the wheel. Liability was reasonably clear by at least the date of the passenger's demand letter. However, the insurer did not make a reasonable offer of settlement as of the date of the passenger's demand notice. The insurer had more than enough notice that its handling of the passenger's claim was improper. The correct remedy was an award of treble damages under ch. 93A, § 9(3) because the...