Does the duty of good faith continue even after the insured sues the insurer?

MultiRegion, United States of America

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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