Rather, "when an insurer denies a claim because of a legitimate, 'honest disagreement' as to the validity of the claim, the insurer is entitled to judgment as a matter of law because the plaintiff cannot establish bad faith or any tortious conduct on the part of the insurer." Topsail Reef Homeowners Ass'n v. Zurich Specialties London, Ltd., 11 F. App'x 225, 239 (4th Cir. 2001) (per curiam) (unpublished); see Universal Underwriters Ins. Co. v. Lallier, 334 F. Supp. 3d 723, 736 (E.D.N.C. 2018). Bad faith does not include an "honest disagreement or innocent mistake."
Rather, "when an insurer denies a claim because of a legitimate, ‘honest disagreement’ as to the validity of the claim, the insurer is entitled to judgment as a matter of law because the plaintiff cannot establish bad faith or any tortious conduct on the part of the insurer." Topsail Reef Homeowners Ass'n v. Zurich Specialties London, Ltd., 11 F. App'x 225, 238 (4th Cir. 2001) (per curiam) (unpublished); see Universal Underwriters Ins. Co. v. Lallier, 334 F. Supp. 3d 723, 736 (E.D.N.C. 2018). Bad faith does not encompass an "honest disagreement or innocent mistake."
Simply parroting the language 16 of subsection (d) is not sufficient to survive a motion to dismiss. See Universal Underwriters Ins. Co. v. Lallier, 334 F.Supp.3d 723, 738 (E.D. N.C. 2018). “Rather, a plaintiff must identify specific failures or how those alleged failures damaged them.
While Plaintiffs may disagree with Defendant's assessment, this does not transform their dispute into a UDTPA claim. See Universal Underwriters Ins. Co. v. Lallier, 334 F. Supp. 3d 723, 738 (E.D.N.C. 2018) (dismissing UDTPA claim where insured failed to plausibly allege that the insurer's liability was reasonably clear); Clear Creek Landing Home Owners' Ass'n v. Travelers Indem. Co. of Conn., 2012 WL 6641901, at *4 (W.D.N.C. Dec. 20, 2012) (dismissing UDTPA claim for failing to allege that liability was reasonably clear; "the fact that Plaintiff may disagree with the assessment of Defendant ... does not transform a run of the mill insurance dispute into a tort cognizable under [the UDTPA]"). Based on the foregoing, the Court finds that Plaintiffs have failed to sufficiently state a claim for violation of the UDTPA.