Calif. Panel Finds No Bad Faith In Failure To Settle Without A Settlement Demand

LOS ANGELES - Finding that an "opportunity to settle does not arise simply because there is a significant risk of an excess judgment," a California appeals panel on Oct. 7 affirmed that an automobile insurer did not act in bad faith by not offering a policy limit settlement when there was no settlement demand by a claimant (Paul Reid, et al. v. Mercury Insurance Co., No. B241154, Calif. App., 2nd Dist.; 2013 Cal. App. LEXIS 798).

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