Maroney v. Allstate Insurance

The receiver charges that Allstate acted in bad faith in failing to offer the policy limits of $10,000 to settle the Marschke claim. It is contended that a jury issue is raised (1) as to whether Allstate's acts and omissions with respect to the settlement negotiations prior to trial constituted bad faith, and (2) as to whether the insurer's conduct toward Weaver prior to trial constituted bad faith as a violation of its duty to keep him informed of developments and refrain from any conduct that would prejudice his rights and interests in the matter.

Appellant contends that Allstate knew…