There is a covenant of good faith and fair dealing which is implied in all contracts, and there are also covenants of good faith and fair dealing implied in property and casualty insurance contracts. These different implied covenants hardly ever carry with them identical requirements of good faith and fair dealing among the different kinds of contracts in which they are implied.
Covenants of good faith and fair dealing that are implied in releases of claims, however, may overlap with one or another type of implied covenant -- particularly when the releases are obtained by a property insurance company or a casualty insurance company. For a good discussion of the issues, see this newly published law review article by Jay M. Feinman, "Enforceability of Releases in Property Insurance Claims," 19 Conn. Ins. L.J. 251, 257-58 (examining role of good faith denial of liability by life insurance company when obtaining release in exchange for payment of less than the value of the policy), 260-63 (examining roles of "opportunistic behavior" and expectations of the insured when insurance companies obtain releases from their own insureds) (2012-2013).
Please Read The Disclaimer. Copyright © 2013 Dennis J. Wall. No claim to original works by Jay M. Friedman, Esquire or original Connecticut Insurance Law Journal works.