The Duty to Reimburse the Insurer
Although an insurance contract imposes on each party a duty of good faith and fair dealing, that neither party will do anything that will harm the right of the other to receive the benefits of the agreement, the duty of good faith includes protecting the rights of the insurer to obtain reimbursement by subrogation. The court
further held that the parties are presumed to know all applicable laws when an agreement is made.
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