“Plaintiff claims that Defendant breached the obligation of good faith and fair dealing because Defendant failed to accept a reasonable settlement demand for a claim against Plaintiff. To establish Plaintiff’s claim against Defendant, Plaintiff must prove all of the following: 1. That Plaintiff was insured under a policy of liability insurance issued by Defendant; 2. That Claimant made a claim against Plaintiff that was covered by Defendant’s insurance policy; 3. That Claimant made a reasonable demand to settle her claim against Plaintiff for an amount within policy limits; 4. That Defendant failed to accept this settlement demand; 5. That Defendant’s failure to accept the settlement demand was the result of unreasonable conduct by Defendant; and 6. That a judgment was entered against Plaintiff for a sum of money greater than the policy limits or That Defendant’s failure to accept the settlement demand was a substantial factor in causing Plaintiff’s harm. “Policy limits” means the highest amount of insurance coverage available under the policy for the claim against Plaintiff. A settlement demand for an amount within policy limits is reasonable if Defendant knew or should have known at the time it failed to accept the demand that a potential judgment against Plaintiff was likely to exceed the amount of the demand based on Claimant’s injuries or losses and Plaintiff’s probable liability. However, the demand may be unreasonable for reasons other than the amount demanded. An insurance company’s unreasonable conduct may be shown by its action or by its failure to act. An insurance company’s conduct is unreasonable when, for example, it does not give at least as much consideration to the interests of the insured as it gives to its own.”
[CACI Jury Instructions [citations omitted]]
