California, United States of America
The following excerpt is from Hand v. Farmers Ins. Exchange, 23 Cal.App.4th 1847, 29 Cal.Rptr.2d 258 (Cal. App. 1994):
4 Similarly, in Cancino v. Farmers Ins. Group, supra, 80 Cal.App.3d 335, 145 Cal.Rptr. 503, a nonparty insured under an auto policy's uninsured motorist coverage was allowed to bring a bad faith claim against the insurer for failure to attempt to settle his injury claim. Once again, the plaintiff's status as a nonparty to the contract did not avert his enjoyment, as an insured, of a duty arising from the covenant of good faith.
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