Can a liability insurer refuse to accept a reasonable settlement offer of a covered claim?
California, United States of America
The following excerpt is from Chappelle v. Alliance United Ins. Co., B235585 (Cal. App. 2012):
"The failure of a liability insurer to perform its implied duty to accept a reasonable settlement offer of a covered claim gives rise to a claim for the insured against the insurer for breach of the covenant of good faith and fair dealing, or a 'bad faith' claim, based on the insurer's refusal to settle the third party claim." (DeWitt v. Monterey Ins. Co. (2012) 204 Cal.App.4th 233, 236.)
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