California, United States of America
The following excerpt is from Merritt v. Superior Court, 88 Cal.Rptr. 337, 9 Cal.App.3d 721 (Cal. App. 1970):
'In determining whether an insurer has given consideration to the interests of the insured, the test is whether a prudent insurer without policy limits would have accepted the settlement offer.' (Crisci v. Security Ins. Co. (1967) 66 Cal.2d 425, 429, 58 Cal.Rptr. 13, 16, 426 P.2d 173, 176.)
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