An insurer may not be held liable under any circumstances for refusing to settle a case,because that decision is within the sole discretion of the insurer.

Question

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An insurer may be held liable for refusing to settle a case if it is found that their decision was made in bad faith or was unreasonable. The insurer has a duty to act in good faith and deal fairly with their insured, which includes making reasonable settlement decisions.

An Insurer May Not Be Held Liable Under Any Circumstances