Law: Big Bucks from Bad Faith

A California lawyer vs. the insurance industry

In 1970 Michael Egan, a roofer in Pomona, Calif., fell off a ladder and seriously injured his back. Though he could walk, he was no longer able to work. But Egan thought he was protected: he had taken out an insurance policy that guaranteed him $200 a month for life in the event of a totally disabling injury. He did indeed start getting checks from his insurer, Mutual of Omaha, but after a while a Mutual claims adjuster began harassing him as a fraud and malingerer. In 1971...

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