Insurance
Nov. 16, 2010
An Insurer's Duty to Settle
A review of the specifics behind the duty of an insurer to settle litigation or claims against its insured. By Kirk Pasich of Dickstein Shapiro.
It has long been said that an insurer has a duty to settle litigation or claims against its insured. However, the specifics of that duty are not always well understood.
The leading case is Comunale v. Traders & General Insurance Co., 50 Cal. 2d 654 (1958). The court stated: "There is an implied covenant of good faith and fair dealing in every contract that neither party will do anything which will injure the right of the o...
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