Ninth Circuit: No Demand Doesn't Mean No Duty

Law360, New York (July 10, 2012, 1:54 PM EDT) -- In a published decision with potentially broad and significant implications for the adjudication of insurance claims handled in California, the U.S. Court of Appeals for the Ninth Circuit held that insurers must promptly seek to effectuate settlement once liability has become reasonably clear, even in the absence of a settlement demand. The court also held that the genuine dispute doctrine does not apply to the duty to settle third-party claims.

The Facts

Du v. Allstate Insurance Co., ___ F.3d. ____ (June 11, 2012) Joon Hak Kim,...
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