What is the obligation of an insurer to exercise good faith in dealing with a claim under a covenant of good faith?
California, United States of America
The following excerpt is from Davy v. Public Nat. Ins. Co., 181 Cal.App.2d 387, 5 Cal.Rptr. 488 (Cal. App. 1960):
In addition to other obligations, the covenant to exercise good faith imposes upon the insurer the duty to communicate to the insured the results of any investigation indicating liability in excess of policy limits, and any offers of settlement which have been made, so that he may take proper steps to protect his own interests. Ivy v. Pacific Automobile Ins. Co., 156 Cal.App.2d 652, 660, 320 P.2d 140.
Good faith implies honesty, fair dealing and full revelation. Hilker v. Western Automobile Ins. Co., 204 Wis. 1, 231 N.W. 257, 235 N.W. 413, 415. Bad
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