In Pickett v. Lloyd's, 131 N.J. 457, 621 A.2d 445 (1993), the issue was whether an insured was entitled to consequential damages in excess of the policy terms as a result of its insurance carrier's bad faith in its review and processing of the insured's first-party claim under an existing policy of insurance. Id. at 466-67, 621 A.2d 445. Pickett addresses the insured's right to compensatory damages in excess of the policy limits. Id. at 474-75, 621 A.2d 445. In defining "bad faith" justifying such consequential damages, the Court adopted the reasoning in Bibeault v. Hanover Ins. Co., 417 A.2d 313, 319 (R.I.1980), that if a claim by an insured "is 'fairly debatable' no liability in tort will arise." Pickett, supra, 131 N.J. at 473, 621 A.2d 445. Pickett v. Lloyd's, 131 N.J. 457, 621 A.2d 445 (1993) involved a first party claim where the insured, an over-the-road-trucker, sought, in part, consequential damages as a result of the insurer's delay in paying collision benefits for damage to a tractor-trailer that was destroyed in a motor vehicle accident. In announcing the duty owed by an insurer, the Court emphasized that in the case of denial of benefits, bad faith is established by showing that no debatable reasons existed for denial of the benefits. In the case of processing delay, bad faith is established by showing that no valid reasons existed to delay processing the claim and the insurance company knew or recklessly disregarded the fact that no valid reasons supported the delay. Pickett, supra, 131 N.J. at 481, 621 A.2d 445. In Pickett, supra, 131 N.J. 457, 621 A.2d 445(1993), the principle that permitted an insured to recover damages for bad-faith was extended to first party claims for consequential damages resulting from inattention and delay in payment of a valid uncontested claim. The standard announced in Pickett applies to an insurer's denial or refusal to pay an otherwise uncontested claim as the result of inattention. Id. at 473, 621 A.2d 445.