Bad Faith Liability May Be Premised on an Insurer’s Failure to Effectuate Settlement When Insured’s Liability Was Reasonably Clear

The Ninth Circuit Court of Appeals in a recent decision held that an insurer’s duty of good faith and fair dealing, which is implied in every contract of insurance, may be violated by the insurer’s failure to attempt to effectuate a settlement within policy limits after liability of its insured has become reasonably clear.  In …

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