1 Elements and Case Citations
The duty of good faith is an implied obligation arising from the insurance contract, accordingly an insurer may be held liable for a breach of duty of good faith in defending and settling claims over which it exercises control on behalf of it’s insured. United States Liab. Ins. Co. v. WW Trading Co., Inc., No. 16-CV-3498 (CBA) (JO), 2018 WL 6344641, at *17 (E.D.N.Y. 2018).
To establish a prima facie case of bad faith against a primary insurer, the plaintiff or excess insurer must show
- the primary insurer exhibited a ‘gross disregard’ for the interests of the plaintiff or excess insurer under New York’s multi-factor test;
- and this gross disregard caused the loss of an actual opportunity to settle within the primary policy limit
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- The rest of the elements for this cause of action;
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