What is a good-faith settlement offer and how is it used in insurance litigation cases?

A good-faith settlement offer is an offer made in an insurance litigation case with the intention of avoiding the cost, delays, and risks of going to trial. The offer is generally accepted as being made in good faith, meaning it is made in earnest and with a genuine desire to resolve the dispute. In Washington, the offer is made by one party to another party in a civil dispute, usually through the insurer or its representative. The offer is intended to settle the case before it goes to court, and is typically made after the insurer has investigated the facts of the case and determined they are willing to pay a certain amount to resolve the matter. The offer is made in an effort to come to an agreement that is agreeable to both parties. It is important to consider any settlement offer carefully, as it may be the only offer made and a counter-offer may be rejected. Additionally, a settlement offer does not have the same consequences as a verdict from a trial, so it is wise to seek advice from a lawyer before making any agreement. In some cases, the parties may also be able to mediate the dispute with the help of a neutral third party, such as a mediator or arbitrator. The mediator or arbitrator will consider both sides of the dispute and help the parties reach a mutually agreeable solution. The settlement offer should be carefully reviewed before any final agreement is reached, as any agreement should be in the best interests of both parties.

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What is a good-faith settlement offer and how is it used in insurance litigation cases?

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