All of the following are true, EXCEPT:

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All of the following are true, EXCEPT:

A. Insurers that are merely negligent in their claim handling face no consequences, regardless of jurisdiction.

B. Bad faith might fall somewhere between simple error and outright fraud.

C. Some courts look for behavior on the part of the insurer which is arbitrary, reckless, or indifferent or involved intentional disregard.

D. Courts attempt to determine the insurer's state of mind when establishing gross misconduct.

Answer: A

AINS Chapter 6

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