The most typical third-party bad-faith claim alleges

Insurance

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The most typical third-party bad-faith claim alleges

Options

A. Breach of contract.

B. Bad-faith claims made against the first-party policyholder relating to coverage issues.

C. Failure of a claim representative to divulge details of a loss investigation that would lead to an increased claim payment to the insured.

D. An improper failure to settle a third party’s liability claim within policy limits followed by a verdict that exceeds the policy limits.

Answer: D

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