Home > Legal > Questions & Answers > Litigation > As a condition 4 settling a suit against it's insured can insurer require the plaintiff to release the insurer 4 its bad faith?
As a condition 4 settling a suit against it's insured can insurer require the plaintiff to release the insurer 4 its bad faith?
A settlement of the suit was agreed to, but insurer is now requiring plaintiff, in addition to releasing the plaintiff from its acts, to release the insurer from all claims, including any bad faith claim plaintiff may have against the insurer
In insurance law (unless your State has a rule against it) the carrier has no obligation to release money
unless you release all of your liability claims. It is quite common to pay on the physical damage and to reserve on the personal injury. However, once the settlement is for the final payment on personal injury and
property damage is no longer an issue, it is quite common to require the injured party to execute a Release on all claims including bad faith. You have the legal right to refuse, and to go to court to litigate the issue, and they have the corresponding legal right not to pay you until a court decides the matter.
