Avoiding Charges of Bad Faith – 3

The insured should understand that if he or she does not contribute the insurer will  continue to defend him or her through trial. The insured should also be told that if the  verdict exceeds policy limits all sums in excess of policy limits will be the insured’s  responsibility. Failure to give such advice can cause, by estoppel, the insurer’s policy limits to have no meaning.

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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