|
 |
||||
|
Resource Documents These documents offer information and suggestions for many types of personal injury and wrongful death cases. Websites Helpful websites on a variety of topics. Free Case Evaluation Jensen Law Firm offers a safe and confidential online case evaluation |
INSURANCE BAD FAITH There are two types of insurance bad faith: One relates to “first-party” bad faith, in which an insurer fails to exercise good faith and fair dealing as to its own insured. The second type has to do with “third-party” bad faith claims, in which a third party with a negligence or other claim against the insured typically proceeds to obtain a judgment against the insured for an amount larger than the insurance coverage limits as to a claim that could have been settled within the insurance coverage limits if the insurer had been willing to do so. After obtaining said excess of coverage limits judgment, the third party generally obtains an assignment from the insured as to any claim the insured has against his/her own insurer for failure to act reasonably to settle the claim within coverage limits. The cornerstone of insurance bad faith is usually the unreasonable (under the circumstances) failure of an insurer to give equal consideration to the rights of its insured when it comes to settling a claim within insurance coverage limits so as to avoid the risk of an excess of coverage limits judgment (for which the insured would be personally liable as to any amount over the insurance coverage limits). |
|||
  |
||||
