Bad Faith Claims When Verdicts Exceed Policy Limits: Nuances of the Insured's Duty to Settle

DATE: Wednesday, January 30, 2019

TIME: 1:00 PM - 2:30 PM

ORGANIZER: Strafford Publications


This CLE webinar will provide counsel with a review of the rights and obligations of the policyholder and the insurance company regarding settlement, the insurance company's liability for verdicts in excess of policy limits, actions insurance companies can take to reduce exposure to bad faith claims, and options for policyholders if the insurance company rejects a settlement demand.

Policyholders and insurance companies often disagree during settlement negotiations involving underlying claims. When an insurance company fails to accept a reasonable settlement offered by an injured party, and the ultimate verdict exceeds policy limits, the insured may face personal liability. The insurance company faces a separate risk—exposure to bad faith claims and liability for the entire judgment.

Navigating these scenarios requires a detailed understanding of the scope of the duty to settle. Counsel must understand tactics commonly used and options available to each side. Though an insurance company may be justified in rejecting a settlement demand, the policyholder may settle without its insurance company's consent and sue the insurance company for bad faith.

Listen as our authoritative panel of insurance practitioners discusses the rights and obligations of the policyholder and the insurance company regarding settlement, the insurance company's liability for verdicts in excess of policy limits, actions insurance companies can take to reduce exposure to bad faith claims, and options for policyholders if the insurance company rejects a settlement demand.

Related People

Insurance Recovery Attorney | Anderson Kill P.C.
Robert M. Horkovich
Managing Shareholder (Firm)
New York

Related Practice Areas

Related Events

AI Did What? Anticipating Insurance Coverage Issues Arising from AI Liabilities
Tuesday, May 7, 2024
Speakers: William G. Passannante
RIMS RISKWORLD 2024 | San Diego, CA
Paradise Scarred: 10 Insurance Lessons from the Tragedy on Maui
Tuesday, May 7, 2024
Speakers: Allen R. Wolff
RIMS RISKWORLD 2024 | San Diego, CA