Critz v. Farmers Insurance Group
In Critz v. Farmers Ins. Group, 230 Cal.App.2d 788, 799, 41 Cal.Rptr. 401 (1964), an injured person who had recovered a judgment against an insured brought an action, as assignee of the insured, against the insurer. The Court of Appeal held that the assignment by the insured to the injured person of any right of action that the insured might have against his insurer for unreasonably rejecting the injured person’s settlement offer to the insurer would subject the insurer to liability for the amount of recovery by the injured person against the insured in excess of the policy limit if the insurer acted in bad faith in rejecting the offer of settlement.
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