LAURA RAPPAPORT-SCOTT v. INTERINSURANCE EXCHANGE OF THE AUTOMOBILE CLUB
Rule that an insurer's failure to accept a reasonable settlement offer within policy limits can support tort liability for breach of the implied covenant of good faith and fair dealing, applicable to third party settlement offers, does not apply to insured's demand that insurer offer a reasonable settlement of an uninsured/underinsured motorist claim. Vast difference between losses claimed by insured and actual losses as determined by arbitrator demonstrated, as a matter of law, that a genuine dispute existed as to the amount payable on underinsured motorist claim, barring insured's cause of action for bad faith delay in making payment.
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