Continuing Duty of Insurance to Investigate

In Mississippi, an insurance company has a continuing duty to investigate a claim even after litigation is filed. As such, bad faith may arise for failing to investigate.   Defendant [insurance company] is under a duty to conduct a full and thorough investigation, it is also under a continuing duty to investigate a loss, even after a lawsuit has been filed. Anthony v. State Farm Fire & Cas. Co., 2009 U.S. Dist. LEXIS 112660, *4 (S.D. Miss. 2009); accord Sobley v. S. Natural Gas Co., 302 F.3d 325, 339 (5^th Cir. 2002); Gregory v. Continental Ins. Co., 575 So.2d 534 (Miss. 1991) This Court has long held that because of the ongoing duty of investigation, the parties are able to introduce evidence related to the claim evaluation both pre- and post- suit.  “Because of Defendant’s continuing duty to investigate a loss, Plaintiffs may not prevent Defendant from introducing evidence outside the claim file even if the evidence came to light in the context of litigation, i.e., the parties may offer any evidence from the entire claim evaluation process pre- and post-suit.” Lebon v. State Farm Fire & Cas. Co., No. 1:08cv509, 2010 WL 1064705, at *2 (S.D.Miss. Mar. 18, 2010).”  Russ v. Safeco Ins. Co. of America, 203 WL 1310501 at *14 (S.D. Miss. 2013).