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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Definitions:

Conditioned Reinforcers

Secondary reinforcers that acquire their reinforcing qualities through their association with primary reinforcers.

Fixed-Interval

In operant conditioning, a schedule of reinforcement where rewards are presented at fixed time intervals, as long as the appropriate response is made.

Variable-Interval

A schedule of reinforcement where rewards are given after unpredictable time intervals, in the context of behavior conditioning.

Fixed-Ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, encouraging a high, stable rate of responding.