On a certified question from the Hawaiian federal district court, the Hawaiian Supreme Court allowed an excess insurer to sue a primary insurer for bad faith. The case, St. Paul Fire and Marine Insurance Co. v. Liberty Mutual Insurance Co., arose out of claims that the primary insurer failed to settle underlying claims within its policy limits. The excess insurer contended the primary insurer had multiple opportunities to settle an accidental death claim within the $1 million primary limits, and its failure to do …
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