In a personal injury case, is a plaintiff entitled to both pay the policy limits and defend the insured in a lawsuit?

In Heredia v. Farmers Ins. Exch., 228 Cal.App.3d 1345, 279 Cal.Rptr. 511 (1991), the victim wanted the insurer to pay the policy limits and defend the insured in a lawsuit against the insured and others. The victim would not execute against the insured, but wanted him present as a defendant to prevent the other defendants from using the "empty chair" defense. Id. at 513. The insurer refused to both pay the policy limits and provide a defense. The policy at issue said the insurer would not defend after paying the limits of liability for coverage. In an action for breach of the duty of good faith and fair dealing, the court held that the insurer had no obligation to accept the victim's settlement offer because it was not within the policy limits. Id. at 516.