2330. Implied Obligation of Good Faith and Fair Dealing Explained

2330. Implied Obligation of Good Faith and Fair Dealing Explained Instruction No 1 Request by Plaintiff Request by Defendant Requested by Given as Proposed Given as Modified Given on Court?s Motion Refused Withdrawn Judge Instruction No 1 In every insurance policy there is an implied obligation of good faith and fair dealing that neither the insurance company nor the insured will do anything to injure the right of the other party to receive the benefits of the agreement. To fulfill its implied obligation of good faith and fair dealing, an insurance company must give at least as much consideration to the interests of the insured as it gives to its own interests. To breach the implied obligation of good faith and fair dealing, an insurance company must unreasonably act or fail to act in a manner that deprives the insured of the benefits of the policy. To act unreasonably is not a mere failure to exercise reasonable care. It means that the insurer must act or fail to act without proper cause. However, it is not necessary for the insurer to intend to deprive the insured of the benefits of the policy. New September 2003; Revised December 2007, December 2015