Opinion ID: 6501101
Heading Depth: 2
Heading Rank: 2

Heading: Bad Faith Denial

Text: To make a bad faith claim, the insured must establish both that the insurer lacked a reasonable basis for denying the insurance benefits and that the insurer knew it lacked a reasonable basis for denying benefits or acted in reckless disregard of the lack of a reasonable basis. Peterson v. W. Nat’l Mut. Ins. Co., 946 N.W.2d 903, 909-10 (Minn. 2020) (citing Minn. Stat. § 604.18, subd. 2(a)). Having found the business use exclusion precludes coverage for the Wobigs’ claim, it necessarily follows that the Wobigs have failed to establish the lack of a reasonable basis for the denial of insurance benefits. Nor is there any other evidence of bad faith in the investigation of this claim. We find no basis for a claim of bad faith on the facts or law of this case. -6-