Calif. Court Limits Bad Faith Claims Against Insurers

Law360, New York (October 8, 2013, 5:00 PM EDT) -- A California appeals court on Monday limited insurers' exposure to bad faith claims by holding that carriers are not required to proactively settle a claim just because it's clear that the stakes are higher than what their policy offers in coverage.

The published ruling marks a victory for Mercury Insurance Co. in a coverage fight over a $5.9 million judgment awarded to a now-deceased victim of a serious car accident caused by a Mercury policyholder. According to the decision, an insurance company is not obligated to...
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