State-by-State Bad Faith Law Comparison

Michigan is one of eight states in the country that has no private cause of action against a policyholders’ insurance company if they operate in bad faith.

State UCSPA Bad Faith 1st Party 3rd Party Emotional Distress Attorney Fees Punitive
Alabama No Yes Common Law Yes Yes No Yes
Alaska Yes Yes Common Law Yes Yes Yes Yes
Arizona Yes* Yes Common Law Yes Yes Yes Yes
Arkansas Yes* Yes Common Law Yes No Yes Yes
California Yes Yes Common Law Yes Yes Yes Yes
Colorado Yes Yes Common Law Yes Yes Partial Yes
Connecticut Yes* Yes Common Law Yes Yes Yes Yes
Delaware Yes* Yes Statutory Partial No Yes Yes
District of Columbia No No No No No No No
Florida Yes* No No Yes Yes Yes No
Georgia Yes* Yes Statutory No No Yes Yes
Hawaii Yes* Yes Common Law Yes Yes Yes Yes
Idaho Yes* Yes Common Law Yes Yes Yes Yes
Illinois Yes* Yes Statutory No No Yes No
Indiana Yes* Yes Common Law Yes Yes No Yes
Iowa No Yes Common Law Yes Yes Yes Yes
Kansas Yes* Partial Limited Yes Yes Ues No
Kentucky Yes* Yes Common Law Yes Yes Yes Yes
Louisiana Yes* Yes Statutory Yes Yes Yes Yes
Maine Yes* Yes Statutory Yes No Yes No
Maryland Yes* Yes Statutory No No Yes No
Massachusetts Yes* Yes Common Law Yes Yes Yes Yes
Michigan Yes* No No Limited No Limited No
Minnesota Yes* Yes Statutory Yes No Yes No
Mississippi No Yes Common Law Limited Yes Yes Yes
Missouri Yes Yes Statutory No Yes Yes
Montana Yes Yes Statutory Yes Yes No Yes
Nebraska Yes No Common Law No Yes Yes No
Nevada No No Statutory No Yes Yes Yes
New Hampshire Yes No Statutory No Limited No
New Jersey Yes Yes Common Law Yes - limited Yes Yes
New Mexico Yes Yes Statutory Yes Unknown Yes Yes
New York Yes No No No No No No
North Carolina Yes Yes Common Law Yes Yes Yes Yes
North Dakota Yes Yes Common Law No Yes Yes Yes
Ohio Yes Yes Common law No Yes Yes Yes
Oklahoma No Yes Common Law No Yes Yes Yes
Oregon Yes No No No Yes Yes Yes
Pennsylvania Yes Yes Statutory Yes No Yes Yes
Rhode Island Yes Yes Statutory No Yes Yes Yes
South Carolina Yes Yes Common Law No No Yes Yes
South Dakota Yes Yes Common Law No Yes No Yes
Tennessee Yes Yes Statutory No Yes Yes Yes
Texas Yes Yes Common Law No Yes Yes Yes
Utah Yes No No No Yes Yes Yes
Vermont Yes Yes Common Law No Yes Yes Yes
Virginia Yes Yes Statutory No No Yes No
Washington Yes Yes Statutory No Yes Yes Yes
West Virginia Yes Yes Statutory No Yes Yes Yes
Wisconsin Yes Yes Common Law Yes Yes Yes Yes
Wyoming Yes Yes Common Law No Yes Yes Yes