Insurance 101 – Chapter 5 – Volume 2 – The Implied Covenant of Good Faith and Fair Dealing – 2

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.

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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