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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.