Abstract
In Beck v. Farmers Insurance Exchange, the plaintiff alleged that his automobile insurance carrier, Farmers Insurance Company ("Farmers"), breached its duty of good faith and fair dealing by failing to settle a claim under the uninsured motorist provisions of his automobile liability insurance policy. The plaintiff charged that Farmers unreasonably delayed settlement of his claim by rejecting his settlement offer without explanation and by failing to make an adequate investigation before withholding benefits due him under the policy. The plaintiff asserted that Farmers' delay caused financial difficulties, which forced him to accept the $15,000 settlement offered by Farmers for his claim, a claim that allegedly was worth much more than the policy limit of $20,000. The plaintiff brought suit contending that Farmers' conduct constituted a breach of its implied duty of good faith and fair dealing, and sought compensatory damages in excess of the policy limits and punitive damages of $500,000.
Recommended Citation
Agee, Theresa Viani
(1988)
"Breach of an Insurer's Good Faith Duty to Its Insured: Tort or Contract,"
Utah Law Review: Vol. 1988:
No.
1, Article 4.
Available at:
https://dc.law.utah.edu/ulr/vol1988/iss1/4