This is a complete course of study providing education and training to enable the student to learn how insurance claims are controlled by the unwritten implied covenant of good faith and fair dealing. It will explain how the covenant, first described in 1766, changed from a contract interpretation mantra into a tort allowing for tort damages to be assessed against an insurer who breaches the covenant of good faith and fair dealing. It is the purpose of liability insurance to protect those people and entities insured against claims they were damaged by the insured’s tortious conduct and they must be resolved fairly and in good faith.  

The Course covers the following:

  1. An explanation of the covenant of good faith and fair dealing before it became a tort.

  2. Why the tort of bad faith was created.

  3. A detailed explanation of the liability insurance policy and how it was designed to provide protection to people.

  4. What liability insurance is.

  5. The statement of the covenant in 1766.

  6. The principle of utmost good faith.

  7. The parts of the liability insurance policy.

  8. Development of the tort of bad faith.

  9. Duties of Persons insured by a liability policy.

  10. Adjusting a liability claim in good faith.

  11. How to avoid claims of bad faith.

 

Learning Objectives
  • Identify what liability insurance is.
  • Explore how liability insurers can act to treat the insured with utmost good faith.
  • Identify the various means by which an insured can breach the covenant of good faith and fair dealing.
  • Identify the various means by which an insurer can breach the covenant of good faith and fair dealing.
  • Discover that the tort of bad faith was created to deter insurers from treating insureds unfairly.
  • Discover that the insurance professional is an expert in treating an insured with good faith.
  • Explore, by review of cases that created the tort, why there is a tort of bad faith.
  • Explore why both parties to the contract of insurance must treat the other in good faith and do nothing that will deprive the other of the benefits of the policy of insurance.
Last updated/reviewed: March 13, 2024

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesCorporate Liability Insurance Certification

  1. Corporate Liability Insurance: Excellence in Claims Handling
  2. How to Acquire a Policy of Third Party Liability Insurance
  3. How to Read and Understand a Liability Insurance Policy
  4. The Necessity For An Honest And Complete Application For Insurance
  5. The Basics of the Law of Contracts for the Insurance Professional
  6. The Law of Torts
  7. Ethics for the Corporate Liability Insurance Professional
  8. The Covenant of Good Faith and Fair Dealing
  9. Interviewing Techniques For The Corporate Liability Insurance Professional
  10. Corporate Liability Insurance Fraud Prevention
  11. Corporate Liability Insurance: Rescission - An Equitable Remedy
  12. The Duties Of An Insured Presenting A Third Party Bodily Injury and Property Damage Claim
  13. The Statement And the Investigation of Third Party Liability Insurance Claim
  14. Compliance with Good Faith Settlement Practices Regulations
  15. Corporate Liability Insurance: Millions For Defense Not A Dime For Tribute
Prerequisites
Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Course 7: The Covenant of Good Faith and Fair Dealing6:26
  Liability Insurance15:04
  What is Liability Insurance11:41
  What is Liability Insurance Continued12:19
  Development of the Tort of Bad Faith10:23
  Duties of Persons Insured by a Liability Policy14:06
  Duties of Persons Insured by a Liability Policy Continued12:26
  Avoiding Bad Faith Claims2:17
CONTINUOUS PLAY
  Course 7 - The Covenant of Good Faith and Fair Dealing 1:24:44
SUPPORTING MATERIALS
  Slides: The Covenant of Good Faith and Fair DealingPDF
  The Covenant of Good Faith and Fair Dealing Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam