Your insurance company has a duty to act in your best interests. They are obligated to defend you in a lawsuit. Whether or not they committed bad faith is a factual determination. For example, if you only had minimum limits and caused a really bad injury the insurance company should have tendered the limits. If the other side said no to the minimum limits because they believe you didn’t have enough coverage than the insurance company by offering the limits would not have committed bad faith. Here is another factual scenario: the other side demanded 10K to resolve the case. Your insurance company said no. The other side then takes the case to trial and is awarded 100K. In that circumstance your insurance company acted in their own interest and not yours. That is bad faith. The way to force your insurance company to hopefully act in a particular way is to write to them. If I wanted a case against me resolved I’d instruct my insurance company to resolve the case within my limits. Once I put it in writing it makes it difficult for them to disregard my instructions.