Bad Faith Set-Ups Defeat the Purpose of the Tort of Bad Faith

Read the full article at https://www.linkedin.com/pulse/video-explaining-common-tactics-used-set-up-bad-faith-barry-1c and see the full video at https://rumble.com/vgjxmn-a-video-explaining-common-tactics-used-to-set-up-a-bad-faith-claim.html and at https://youtu.be/82UeL_GwlDg and at https://zalma.com/blog plus more than 3700 posts.

One tactic for setting up a bad faith claim is to make a settlement offer that likely cannot be complied with by the insurer. Knowing the settlement demands may not be met, the insured/claimant waits for the insurer’s misstep, then asserts a bad faith claim.

Sometimes the insured/claimant will make an offer for settlement containing an arbitrary and unrealistic deadline for acceptance, before the insurer has had the opportunity to fully investigate the claim. When the insurer is unwilling to agree immediately to the insured’s/claimant’s demands, a bad faith claim is filed.

Bad faith cases that are manufactured to avoid a settlement expand the concept of “bad faith” beyond what the case law and statutes require for “good faith.” An offer of settlement made only for the purpose of setting up a bad faith lawsuit is the obverse of the requirement that insurers act fairly and in good faith.