Darlow v. Farmers Insurance Exchange
In Darlow v. Farmers Insurance Exchange, 822 P.2d 820 (Wyo. 1991), the insured argued that the insurer violated its duty of good faith and fair dealing by intentionally failing to inform the insured of available policy benefits and misrepresenting the insured's rights under the policy. Id., at 827.
The Court held that:
The duty of good faith and fair dealing includes informing an insured as to coverage and policy requirements when it is apparent to the insurer that:
(1) there is a strong likelihood that its insured only can be compensated fully under her own policy and;
(2) the insured has no basis to believe that they must rely upon their policy for coverage. (822 P.2d at 828.)
The Court concluded that the insurer had not violated its duty because the insured knew and understood the terms of the policy. We also noted that the insured had never requested an explanation of the medical benefits payments under the policy so there was no occasion for the insurer to advise the insured of those rights under the policy and, hence, no violation of any obligation to inform the insured. (Id., at 828-29.)