- December 28 2016
- | Insurance

If a demand is made of an insurance company to pay the policy limits, and the demand is rejected, you can potentially get into a situation where you may get an assignment from the defendant against his own insurance company for breach of the insurance contract, bad faith, and failing to settle within the policy limits.
It would have to be a demand within the settlement. There is a case law in Nevada that says no matter the amount of the demand, the insurance company must always communicate that demand to its insured.
In order to get the insurance company liable for making unreasonable settlement decisions, the demand has to be within the policy limits.