Most bad-faith claims arising out of contracts are insurance-related. All of the following explains why this is the case, EXCEPT:

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Most bad-faith claims arising out of contracts are insurance-related. All of the following explains why this is the case, EXCEPT:

A. Insurance contracts involve the public interest and unequal bargaining power.

B. Insurers have an implied duty of good faith and fair dealing when settling claims.

C. Insurers generally control claim investigation, evaluation, negotiation, and settlement.

D. In comparison to other contracts, insurance contracts require a low standard of conduct.

Answer: D

AINS Chapter 6

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