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25 Seton Hall L. Rev. 74 (1994-1995)
An Overview of Insurance Bad Faith Law and Litigation

handle is hein.journals/shlr25 and id is 92 raw text is: AN OVERVIEW OF INSURANCE BAD FAITH LAW
AND LITIGATION
Douglas R. Richmond*
I.  Introduction  .........................................  75
II.  Background  ..........................................  76
III.  Third-Party  Bad  Faith  ................................  80
A.  The  Duty  to  Defend ..............................  82
B. The Duty to Indemnify and the Duty to Settle ...      88
1. The Insured Objects to Settlement ...........     90
2. Special Problems Accompanying the Duty to
Settle:  Multiple  Claims  ......................  92
a. Attempted Solutions to the Problem of
M ultiple  Claim s  ..........................  92
b.  Bad  Faith  ................................  94
C. What Constitutes Bad Faith? .....................     96
1. Unreasonable Delay or Dilatory Claims
Practices  .....................................  99
2. The Insurer's Failure to Investigate .......... 101
3. Compelling An Insured to Contribute to
Settlem ent  ...................................  103
IV. Bad Faith In The First-Party Setting .................. 103
A. The Development of First-Party Bad Faith As An
Independent Tort ................................   107
B. First-Party Bad Faith Defined and Examined ..... 108
1. The Dual Client Doctrine and First-Party Bad
Faith  .........................................  112
C. Unfair Claims Practices Statutes .................. 115
V. Affirmative Defenses Available To Insurers ........... 118
A.  Advice  of Counsel ................................  119
B. The Insurer's Privilege to Consider its Own
Interests  ..........................................  121
C. The Insured's Failure to Cooperate .............. 122
D.  Federal Preemption   ..............................  126
VI. Comparative Fault, Comparative Bad Faith And
Reverse  Bad  Faith  ....................................  128
A.  Comparative   Fault ................................  128
* Associate, Armstrong Teasdale Schlafly & Davis, Kansas City, Missouri. B.S., Fort
Hays State University, 1980; M.Ed., University of Nebraska, 1981; J.D., University of
Kansas, December, 1988.

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