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Pennsylvania Consolidated Statutes

42 Pa. Cons. Stat. § 8371 (2026)

 Actions on insurance policies.

✓ current as of May 2026
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SUBCHAPTER G

SPECIAL DAMAGES

 

Sec.

8371.  Actions on insurance policies.

 

Enactment.  Subchapter G was added February 7, 1990, P.L.11, No.6, effective July 1, 1990.

§ 8371.  Actions on insurance policies.

In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions:

(1)  Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.

(2)  Award punitive damages against the insurer.

(3)  Assess court costs and attorney fees against the insurer.

Notes of Decisions
Cited in 650 cases (208 in the last 5 years), 1991–2026 · leading case: Toy v. Metro. Life Ins., 928 A.2d 186 (Pa. 2007).
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Toy v. Metro. Life Ins., 928 A.2d 186 (Pa. 2007). · cites it 20× “We granted review to consider (1) the purview of the bad faith statute, 42 Pa.C.S. § 8371 ("§ 8371"); (2) whether justifiable reliance is an element of the claims Toy brought under the Unfair Trade Practices and Consumer Protection Law ("Consumer Protection Law"), 73 P.”
Rancosky v. Washington Nat'l Ins. Co., Aplt., 170 A.3d 364 (Pa. 2017). · cites it 11× “42 Pa.C.S. § 8371. 2 The lengthy factual and procedural history underlying the instant dispute involves several interrelated claims and parties not relevant to the narrow question upon which review was granted.”
Mishoe v. Erie Ins., 824 A.2d 1153 (Pa. 2003). · cites it 20× “The question presented in this case is whether there is a right to a jury trial in a bad faith action pursuant to 42 Pa.C.S. § 8371. We hold that there is not.”
James Barber v. Unum Life Ins. Co. of Am., 383 F.3d 134 (3rd Cir. 2004). · cites it 25× “At issue is whether ERISA preempts Pennsylvania’s bad faith statute for insurance claims, 42 Pa.C.S. § 8371, through express or conflict preemption.”
Birth Ctr. v. St. Paul Companies, Inc., 787 A.2d 376 (Pa. 2001). · cites it 10× “I nevertheless write separately to assert my view that, unlike Justice Zappalla, I believe that the law in this Commonwealth establishes that there are two separate "bad faith" claims that an insured can bring against an insurer—a contract claim for breach of the implied…”
Se. Pennsylvania Transp. Auth. v. Holmes, 835 A.2d 851 (Pa. Commw. Ct. 2003). · cites it 14× “The complaint set forth three counts: (1) violation of the Pennsylvania Unfair Trade Practices Act and Consumer Protection Law; (2) statutory bad faith under 42 Pa.C.S. § 8371; and (3) breach of duty of good faith and fair dealing.”
Wenk, J. v. State Farm Fire & Cas., 228 A.3d 540 (Pa. Super. Ct. 2020). · cites it 7× “Whether institutional evidence, such as an insurer’s corporate policies and practices related to the handling of claims by its insureds, is as a matter of law irrelevant to a claim for insurance bad faith under 42 Pa. C.S. § 8371? 2. Irrespective of the answer to the Question No.”
Am. & Foreign Ins. v. Jerry's Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). · cites it 4× “42 Pa.C.S. § 8371; Frog, Switch & Mfg., 193 F.”
Bernie Clemens v. New York Cent. Mut. Fire I, 903 F.3d 396 (3rd Cir. 2018). · cites it 4× “After a jury awarded him $100,000 in punitive damages under the Pennsylvania Bad Faith Statute, 42 Pa. Cons. Stat. § 8371 , Appellant Bernie Clemens submitted a petition for over $900,000 in attorney's fees from Appellee New York Central Mutual Fire Insurance Company ("NYCM").”
Grossi v. Travelers Pers. Ins. Co., 79 A.3d 1141 (Pa. Super. Ct. 2013). · cites it 6× “Whether the trial court erred as a matter of law in awarding expert witness fees and costs of litigation which are not recoverable as a matter of law under 42 Pa.C.S. § 8371? Travelers’ Brief at 2.”
Olsofsky v. Progressive Ins., 52 Pa. D. & C.4th 449 (2001). · cites it 24× “NEALON, J, Defendant, Progressive Insurance Company, has filed preliminary objections seeking to dismiss those claims which have been filed by plaintiff, Michael Olsofsky, charging Progressive with bad faith liability pursuant to 42 Pa.C.S. §8371 and wanton misconduct under 75…”
Hollock v. Erie Ins. Exch., 903 A.2d 1185 (Pa. 2006). · cites it 9× “I believe this case presents important issues regarding whether the trial court may consider the conduct of an insurer during the litigation of a bad faith claim brought pursuant to 42 Pa.C.S. § 8371, the formulation of an award of punitive damages where there is a finding of…”
Show all 650 citing cases →
— 42 Pa. Cons. Stat. § 8371(1) — 8 cases
Mishoe v. Erie Ins., 824 A.2d 1153 (Pa. 2003). “The question presented in this case is whether there is a right to a jury trial in a bad faith action pursuant to 42 Pa.C.S. § 8371. We hold that there is not.”
Jurinko v. Med. Prot. Co., 305 F. App'x 13 (3rd Cir. 2008).
TDG P'ship v. Regis Ins., 43 Pa. D. & C.4th 169 (1999).
Christine Richardson v. Gov't Employees Ins. Co. (Wash. Ct. App. 2017).
Katz v. Deluca (E.D. Pa. 2024).
— 42 Pa. Cons. Stat. § 8371(2) — 8 cases
Mishoe v. Erie Ins., 824 A.2d 1153 (Pa. 2003). “The question presented in this case is whether there is a right to a jury trial in a bad faith action pursuant to 42 Pa.C.S. § 8371. We hold that there is not.”
Grossi v. Travelers Pers. Ins. Co., 79 A.3d 1141 (Pa. Super. Ct. 2013). “Whether the trial court erred as a matter of law in awarding expert witness fees and costs of litigation which are not recoverable as a matter of law under 42 Pa.C.S. § 8371? Travelers’ Brief at 2.”
Pennsylvania Med. Soc'y Liab. Ins. v. Commonwealth, Med. Prof'l Liab. Catastrophe Loss Fund, 804 A.2d 1267 (Pa. Commw. Ct. 2002).
Rutkowski v. Allstate Ins., 69 Pa. D. & C.4th 10 (2004).
Milton S. Hershey Med. Ctr. of Pennsylvania State Univ. v. Commonwealth Med. Prof'l Liab. Catastrophe Loss Fund, 763 A.2d 945 (Pa. Commw. Ct. 2000).
— 42 Pa. Cons. Stat. § 8371(3) — 4 cases
Jurinko v. Med. Prot. Co., 305 F. App'x 13 (3rd Cir. 2008).
Rutkowski v. Allstate Ins., 69 Pa. D. & C.4th 10 (2004).
Boyce v. Nationwide Mut. Ins., 842 F. Supp. 822 (E.D. Pa. 1994).
O'Connor v. Progressive Advanced Ins. Co. (M.D. Penn. 2024).
— 42 Pa. Cons. Stat. § 8371(a) — 1 case
Davis v. Fid. Nat'l Ins., 37 Pa. D. & C.5th 491 (2014).
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