In an article recently published by the Insurance Coverage Law Center, Stewart Smith attorney Greg Delfiner discusses what happens when there are insufficient policy limits to handle a case with multiple claimants. He explains that while courts generally hold that insurers must act reasonably and in good faith when deciding to settle claims, how to best handle the situation largely depends on the facts of the case and the law in a particular jurisdiction that applies to the policy, as different courts favor distinct approaches. He describes possible courses of action and how insurers may be able to minimize their exposure to bad faith claims.
Read the article.