Coblentz plaintiffs cannot control whether the relevant insurance policy provides coverage for the claim at issue, nor can they decide whether an insurer will defend the claim or not, but they certainly can endeavor to accept a reasonable amount from the insured and conduct legitimate negotiations and consummate the settlement in good faith
handle a claim in good faith
may disagree about what must necessarily be
Thus, Berges was not a situation where the insurer did not have an adequate opportunity to investigate the claim, or was denied any information requested from the claimant, nor was there any evidence the claimant was not negotiating in good faith
7) Missing from this statute, however, is an affirmative, reciprocal obligation on the part of the insured or third-party claimant to likewise act in good faith
in attempting to settle the claim.
Rix LJ stated: If it is right to allow that circumstances could arise where an insurer would not be in good faith
by acting on a prima facie right to avoid for non-disclosure, then the question would have to be faced as to the conceptual analysis whereby an exercise of a fight to avoid could be invalidated by the insurer's bad faith.
In the Third Edition of Casualty Claims Practice (Irwin Press, 1964), James Donaldson cited an unnamed case in which the court had said, "By asserting in the policy the right to handle all claims against the insured, including the right to make a binding settlement, the insurer assumes a fiduciary position towards the insured and becomes obligated to act in good faith
and with due care in representing the interests of the insured.
This article explores whether an insurance carrier may also be responsible for a punitive damage award against its insured, based on the insured's conduct, as part of a compensatory damage claim in a subsequent action for bad faith against the carrier and, if so, the issues a carrier may encounter while discharging its obligation to its insured to act in good faith
in the defense of an underlying claim involving punitive damages.
4) Simply put, states that have adopted this tort require insurance companies to act in good faith
, and fairly deal with their insureds.
Courts have held that there is a legal duty implied in both first- and third-party insurance contracts that an insurer must act in good faith
in dealing with its insured.
11) Each case is determined on its own facts, and the question of the insurer's failure to act in good faith
with due regard for the interests of the insured is for the jury.