California, United States of America
The following excerpt is from Parry v. 20th Century Ins. Co., 198 Cal.App.3d 1207, 244 Cal.Rptr. 367 (Cal. App. 1988):
In Heninger v. Foremost Ins. Co., supra, 175 Cal.App.3d 830, 221 Cal.Rptr. 303, a mobile home park resident's trailer and contents were damaged by one of the park's trees. The resident presented a claim to the park's insurer. The claim was settled for a sum that the resident alleged was less than to which he was entitled. The resident signed a release of all claims striking out all references to the insurer. No action was filed against the insured park owner. The resident later filed a complaint against the insurer; a demurrer to the complaint was sustained and the action
Page 372
In Taylor v. California State Auto. Assn. (1987) 194 Cal.App.3d 1214, 240 Cal.Rptr. 107, a pedestrian injured in an automobile accident brought an action against the driver's insurer for bad faith conduct in violation of section 790.03, subdivision (h)(5). The third party claimant had settled and signed a release which provided that she understood that liability was disputed. The appellate court affirmed the summary judgment granted in favor of the insurer on the ground that there had been no admission or final determination of the insured's liability in the underlying action, a prerequisite to maintaining a third party action under section 790.03, subdivision (h).
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.