Home > Uncategorized > New Case: Insurer Possible Duty to Initiate Settlement Within Policy Limits

New Case: Insurer Possible Duty to Initiate Settlement Within Policy Limits

August 11, 2012

Du v. Allstate Insurance Company (United States Court of Appeals, Ninth Circuit, June 11, 2012, Case No. 10-56422)

Brief summary.  The insurer covenant of good faith and fair dealing requires the carrier to consider in good faith the interests of the insured equally with its own and evaluate settlement offers within policy limits as though it alone carried the entire risk of loss.  Holding that an insurer’s duty to settle under the implied covenant of good faith and fair dealing can include the duty to effectuate settlement within limits even in the absence of a demand from the other party.  Of course, you need to read the entire case for a complete discussion and understanding of the Court’s holding.

Dave Tate, Esq. (San Francisco)

Advertisements
Categories: Uncategorized