Does an Excess Judgment Always Indicate Bad Faith on the Part

question 10

Essay

Does an excess judgment always indicate bad faith on the part of the insurer? Why or why not?

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Simultaneous Decrease

A situation where two or more economic variables or quantities decline at the same time.

Demand Curve

The Demand Curve is a graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.