McCullough v. Golden Rule Insurance Co
In McCullough v. Golden Rule Insurance Co., 789 P.2d 855, 860 (Wyo. 1990), the Court held the appropriate test for determining whether there was bad faith is the objective standard of whether the validity of the denied claim was not fairly debatable.
To prove a claim for bad faith, a plaintiff must demonstrate:
(1) the absence of a reasonable basis for denying benefits of the policy and;
(2) the defendant's knowledge or reckless disregard of the lack of a reasonable basis for denying the claim. 789 P.2d at 860.