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Insurers facing policy limits demands must act cautiously under even the best of circumstances to avoid threats of bad faith. The situation becomes far more complicated when the insurer receives a policy limits demand and it insures multiple and/or additional insureds. Complete chaos can ensue when an insurer has multiple and/or additional insureds, and the claimant’s counsel is only willing to release one insured and/or additional insured for the insurer’s available policy limits.

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