H4733

Bad Faith Presumption in Insurance Settlement Offer Act creates a rebuttable presumption of bad faith by an insurer.

The Bad Faith Presumption in Insurance Settlement Offer Act creates a rebuttable presumption of bad faith by an insurer when a settlement agreement is executed by the claimant, defendant, and their counsel, and the insurer refuses to accept it. The presumption arises if the insurer fails to settle within policy limits after a reasonable opportunity, and the case proceeds to trial with a judgment or arbitration award in favor of the claimant. The insurer can rebut the presumption by showing a material defense, greater liability exposure, or unavailable information.