Does an implied covenant of good faith apply to an insurer?

California, United States of America


The following excerpt is from Signal Companies, Inc. v. Harbor Ins. Co., 165 Cal.Rptr. 799, 27 Cal.3d 359, 612 P.2d 889 (Cal. 1980):

2 But see Comunale v. Traders & General Ins. Co., 50 Cal.2d 654, 658-659, 328 P.2d 198, imposing an implied covenant of good faith upon an insurer to settle in an appropriate case.

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