It seems fair to say that this is now the settled rule under Florida law: A liability insurance company can settle with some claimants and not others, but it has a legal duty to fully investigate all claims.[1]
[1] See Primeaux v. Progressive Am. Ins. Co., 620 F. Supp. 3d 1173, 1179 (M.D. Fla. 2022).
Investigation and settlement are discussed in the context of both third-party and first-party insurance bad faith cases in both Volumes of DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH (West Publishing Co. 3d Edition, 2024 Supplements in process).
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