Transcription of HARVEY KRUSE, P.C. BAD FAITH
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HARVEY KRUSE, P.C. BAD FAITH
HARVEY KRUSE, BAD FAITH . Prepared By: Michael F. Schmidt P25213. HARVEY KRUSE, 1050 Wilshire Drive, Suite 320. Troy, MI 48084. (248) 649-7800. Fax (248) 649-2316. A. INTRODUCTION. Subject to specific policy terms and conditions, insurers have a contractual duty to defend and indemnify their insured. Implicit in that contractual relationship is an insurer's duty of good FAITH and fair dealing. Accordingly, when an insured believes he has been wronged, he may attempt to bring suit alleging both breach of contract and bad FAITH . This outline will briefly address the two basic factual scenarios in which claims of bad- FAITH arise. The first scenario arises when an insurer fails to settle a claim against its insured within policy limits, thereby exposing the insured to excess liability.
3 even though the insurer’s actions were not actually dishonest or fraudulent. Id. at 136-137 (footnotes omitted). In addition to providing the instructional definition of bad …
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