Insurance 101 – Chapter 11 – Volume 67 – Avoiding Charges of Bad Faith – 3

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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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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