The following excerpt is from Fid. Nat'l Fin., Inc. v. Nat'l Union Fire Ins. Co. of Pittsburg, CASE NO. 09-CV-140-GPC-KSC (S.D. Cal. 2014):
The duty of good faith continues even after the insured sues the insurer because the contractual relationship "does not terminate with commencement of litigation." White, 40 Cal. 3d at 885. A different rule would allow the insurance company to delay serious investigation until suit is filed and insulate its post-litigation conduct from the duty of good faith. Id. at 886; Jordan v. Allstate Ins. Co., 148 Cal. App. 4th 1062, 1076 n.7 (2007).
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