O.K. Lumber Co. v. Providence Washington Insurance Co.

OPINION

COMPTON, Justice.

This appeal raises the question whether a third party claimant has a cause of action against a tortfeasor’s insurer for failure to promptly settle a claim. O.K. Lumber Company, Inc. asserts three theories of relief based on its prior dealings with Providence Washington: (1) breach of the common law duty of good faith and fair dealing; (2) violation of the Unfair Claim Settlement Practices Act, AS 21.36.125; and (3) violation of the Unfair Trade Practices and Consumer Protection Act, AS 45.50.-471-561.

I. FACTUAL AND PROCEDURAL BACKGROUND

O.K. Lumber Company, Inc. (O.K.…