QuestionQUESTION: Does the other car insurance have obligation of good faith to settle my loss or only my own insurance has obligation of good faith to settle my loss?
ANSWER: Hi Ray,
This question is too general. There are many variable in which I cannot answer if a no fault state. I have no clue when it comes to those issues.
I can only tell you from the very little liability experience and more from the comprehensive end as to my understanding in non-no fault states.
When dealing with good faith and bad faith, it is my understanding that this is applied via contract between the insured and the carrier. If you have a policy with a carrier, the carrier has a fiduciary duty to the insured. In the event the insured has a claim, it is the responsibility of the carrier to honor the claim. This would be good faith on the part of a carrier on a 2 party claim (the insured and the insurer).
Bad faith is when the carrier refuses to honor the claim with no good reason with the insured.
As for a third party insurance carrier's obligations to you, there is no duty or responsibility they have to you because you do not have the insurance policy with them.
If you are in a non-no fault state, you can make the claim with your carrier and pay your deductible. When they collect from third party, you will get your deductible back.
---------- FOLLOW-UP ----------
QUESTION: Do you mean the other car insurance does not have to have good faith negotiate with me if it is the other car driver's fault?
AnswerHello,
AS I told you, I am answering this in the blind. I am not familiar whatsoever with no fault insurance if it applies to your situation.
I was just making a general statement here and in not in a no fault state, it is my understanding that a third part insurance carrier has no contractual obligation with you for good faith.
To get exact answers and how it affects you and your situation, contact your insurance company because they do represent you and ask them how to proceed.
Rob
