BAD FAITH EXPOSURE EVEN THOUGH NO DEMAND WITHIN LIMITS.

After citing Illinois, South Dakota, and Tennessee cases, the Court in Sacred Heart Health Serv's v. MMIC Ins., Inc., ___ F. Supp. 3d ___, 2023 WL 3742544, at *26 (D.S.D. May 31, 2023). held that "an insurer may be liable for bad faith even if it did not receive a demand to settle within policy limits." 

Decisions involving the duty to initiate settlement negotiations in third-party cases like Sacred Heart, including the decisions relied on in that case, are discussed at length in § 3:16 in 1 DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH (3d Edition West Publishing Company, with 2023 Supplements).