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Under existing Louisiana Supreme Court precedent, an insurer who subjects its insured to excess judgment may be liable for bad faith failure to settle claims, even in the absence of formal demand by a claimant.  However, there are some caveats.  Louisiana Revised Statute § 22:1973(A) provides: [a]n insurer . . . owes to his insured …

A 2016 Louisiana appellate court ruling that rejected expansive readings of aircraft liability policies and endorsements therein remains the seminal case on the issue.  Specifically, in King v. Old Republic Ins. Co., the Louisiana Fourth Circuit held an aviation policy does not afford coverage where the aircraft at issue: (1) is not listed on a …