Insurer’s Bad Faith

Bad faith on the part of an insurance company is failing to settle a claim when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its policyholder, insured or an excess carrier and with due regard for his interests. See State Farm Mutual Automobile Insurance Co. v. LaForet, 658 So.2d 55 (Fla. 1995) and Boston Old Colony Insurance Co. v. Gutierrez, 386 So.2d 783, 785 (Fla. 1980) (duty “to advise the insured of settlement opportunities, to advise as to the probable outcome of the litigation, to warn of the possibility of an excess judgment, and to advise the insured of any steps he might take to avoid same”). In order to state a claim for Bad Faith, the Plainitff must establish that the Bad Faith was the legal cause of the loss.