Insurance 101 – Chapter 11 – Volume 65 – Avoiding Charges of Bad Faith

Avoiding Charges of Bad Faith

Settlement Within Policy Limits

The insurer should initiate settlement negotiations when the possibility of a judgment beyond the policy limits is reasonably foreseeable. Since a  settlement in such a situation would exhaust all of the insurer’s potential liability the decision to try the case does not risk the insurer’s money: it risks the financial security of the insured.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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