Court decisions affect the process around adjusting auto claims in many jurisdictions. How the claims organizations and actuaries evaluate the impacts of these decisions in establishing reserves must be considered. Florida has had some court decisions in the last 10 years that raise many questions in the handling of claims and thus are needed to be considered when setting adequate reserves. Failure to comply with these rulings may lead to settlements that are in excess of the policy limits due to supposed bad faith actions against the insurance companies. How are we reserving for the expected amounts in excess of limits and how are we tracking these costs? Companies cannot use these amounts in their pricing or in the excess profits filings. An attorney will discuss the key court decisions and we will talk about the activities from the claims organization to accommodate the rulings and how companies take this into consideration when establishing reserves.