Bad Faith in Context -

Bad faith most commonly arises in one of three different contexts: (1) in a claim that an insured brings against its own insurer; (2) in a claim that a third-party makes against a policyholder that an insurer is asked to defend and indemnify; and (3) when a primary carrier is responsible for handling a claim that may involve an excess insurance carrier. Although each context presents different specific challenges and obligations which should be identified, managed, and complied with, there are concepts that apply to all bad faith litigation prevention and defense.