wooden gavel with usa dollar on desk. close up. Credit: ROMAN/Adobe Stock Further, in New York, an insurer has the discretion “to settle one or more claims against it even if doing so may jeopardize the ability of later recovering or settling plaintiffs to collect on their claims, so long as the insurer does so in good faith and there are no statutory prohibitions against such settlements. (Credit: ROMAN/Adobe Stock)

There is a distinct possibility that an insurer will be faced with a claim involving multiple claimants and insufficient policy limits, requiring it to determine how to handle the matter properly and efficiently.

For instance, a bus owned by an insured transportation company is involved in an accident resulting in the death of several passengers and injuring many others, with the insured being clearly liable.  Multiple lawsuits are filed, and the policy limits will be insufficient to settle all the claims or pay for all potential judgments. This scenario presents unique questions.

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