9th Circ. Ruling May Boost Bad Faith Claims Against Insurers

Law360, New York (June 15, 2012, 9:13 PM EDT) -- The Ninth Circuit held on June 11 that insurance companies are obligated under California law to proactively work toward a settlement when its insured's liability is clear — even if claimants haven't made a demand, a ruling that could boost bad faith claims against insurers.

The appeals court took the opportunity to clear up confusion about the scope of an insurer's duty to settle under California law while weighing in on a coverage dispute with Allstate Insurance Co. subsidiary Deerbrook Insurance Co. over a serious car...
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