Can insurer be acting in bad faith for failing to settle a claim when the insured or claimant is deliberately attempting not to settle in order to create a bad faith “refusal to settle” claim against the insurer and thereby avoid low policy limits? Or must the insured/claimant be making a good faith effort to settle, such that minor, technical issues or delays cannot be seized on to avoid a settlement the insurer clearly sought to reach? Does the bad faith statute need to be amended to affirmatively impose a concomitant good faith obligation on the insured/claimant?
The Good Faith, Bad Faith, and Ugly Set-up of Insurance Claims Settlement