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Why Are Insurers Liable for Both Compensatory and Punitive Damages

Question 49

Multiple Choice

Why are insurers liable for both compensatory and punitive damages for a breach which is in bad faith?


A) The insured needs to be compensated for the amount spent on the case.
B) Bad faith is considered an independent tort by itself.
C) Courts have traditionally favored punitive damages.
D) Such breaches in bad faith are a very rare phenomenon.

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