Actions on insurance policies. In an action arising under an insurance policy, if the court finds that the insurer

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.