The Implied Covenant of Good Faith and Fair Dealing – 2
The duty imposed by the contract is defined as requiring that in every insurance contract there is an implied covenant of good faith and fair dealing that neither party will do anything which will injure the right of the other to receive the benefits of the agreement. Gruenberg v. Aetna Insurance Co., 9 Cal. 3d. 566, 108 Cal. Rptr. 480 (1973). The covenant is mutual and the principles of good faith and fair dealing impose an affirmative obligation on the insured to cooperate.
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