The Duty of the Insured
The purpose of the implied covenant of good faith and fair dealing is to protect the reasonable expectations of both parties to the contract. The duty to act in good faith is a mutual duty imposed on both the insured and the insurer. However, regardless of the clear statements of the law that the duty is mutual, in practice it requires the insured to deal only with a modicum of fairness toward the insurer while the insurer must deal with its insured with the utmost good faith.
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