In this article, Robert Jerry expounds on Professor Abraham's article on insurer liability for bad faith by pointing out that the concept of institutional bad faith is not a new phenomenon, but rather, one that is as old as the insurance industry itself. Jerry focuses on Abraham's depiction of the "specialness" and "distinctiveness" of insurance, while exploring additional instances of "rotten to the core" systemic bad faith dating as far back as the nineteenth century. Much like Abraham did in his article on bad faith, Jerry uses these examples of systemic bad faith to further his assertion that the insurance industry, due to its "specialness,” is held to higher standards of care than other realms of "ordinary business."
Robert H. Jerry, II, Bad Faith at Middle Age: Comments on “The Principle without a Name (Yet),” Insurance Law, Contract Law, Specialness, Distinctiveness, and Difference, 19 Conn. Ins. L.J. 13 (2012), available at http://scholarship.law.ufl.edu/facultypub/327