Is a adjuster seeking to reduce the amount legitimately payable in a motor vehicle accident claim breach the implied covenant in the contract?
California, United States of America
The following excerpt is from Ghazarian v. Magellan Health, Inc., 266 Cal.Rptr.3d 841, 53 Cal.App.5th 171 (Cal. App. 2020):
adjusters seeking to reduce the amounts legitimately payable and numerous other tactics may breach the implied covenant because they frustrate the insured's right to receive the benefits of the contract in prompt compensation for losses. " ( Waller v. Truck Ins. Exchange, Inc. (1995) 11 Cal.4th 1, 36, 44 Cal.Rptr.2d 370, 900 P.2d 619.)
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