Posted On: July 9, 2007, 12:36 pm CDT

Posted By: clm mgr

I think most of you are missing the point about the "Bad Faith" award...the key to "Bad Faith" is not whether the insurance company offered their policy limits. The key is that they failed to offer up their policy limits when such an offer would have settled the claim. In other words, if the insurance company had an opportunity to settle the claim in its entirety against their insured by payment of its policy limits and did not do so when the claim's value clearly exceeds their policy limit, then they acted in "Bad Faith" by exposing their insured to a judgment in excess of his policy limits.