There is a definite tension between investigation of a claim, on the one hand, and initiation of settlement negotiations, on the other.
A recent Federal Court opinion may have carved out -- or recognized, depending on your point of view -- an exception to initiation, where investigating trumps initiation if "the degree of seriousness of the injuries sustained in relation to the policy limits involved made it reasonable for the insurance companies to undertake investigation and seek additional information before initiating settlement discussions." Markel Am. Ins. Co. v. Flugga, 2013 WL 1289522 *3 (M.D. Fla. March 13, 2013)(Hodges, J.).
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