In every case where a judgment against the insured is entered in excess of the insured's policy limits, the insured will have a claim against his or her insurer for bad faith.

Question

Quizplus · Accepted Answer

Not every case where a judgment exceeds policy limits results in a bad faith claim against the insurer. Bad faith generally requires proof that the insurer acted unreasonably in handling the claim, such as refusing a reasonable settlement within policy limits.

In Every Case Where a Judgment Against the Insured Is