TOTALLY IGNORING THE INSURED'S RISK IS NOT AN OPTION.
"Where the liability is clear and injuries are so serious that an excess judgement is likely, an insurer must do more than merely wait for a settlement offer; the insurer has an affirmative duty to initiate settlement negotiations."[1]
[1] Ellis v. GEICO Gen. Ins. Co., 541 F. Supp. 3d 1371, 1380 (S.D. Fla. 2021), aff'd with opinion, No. 21-12159, 2022 WL 454176 (11th Cir. Feb. 15, 2022). The trial court granted the carrier's motion for summary judgment of no bad faith in Ellis.
The Duty to Initiate Settlement Negotiations is explored at length in 1 DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH § 3:16 (West Publishing 3d Edition, 2022 Supplements forthcoming). With the forthcoming publication of its 2022 Supplements, LITIGATION AND PREVENTION OF INSURER BAD FAITH draws on over 5,000 authorities.
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