Insurance 101 – Chapter 11 – Volume 15 – Critz v. Farmers Insurance Group

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.

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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