Steven M. Sweat, Personal Injury Lawyers, APC

California has laws similar to this one that require insurance companies to accept reasonable settlement offers or be subject to jury awards in excess of their policy limits. These laws serve to encourage insurers to resolve claims without requiring the plaintiff or the civil justice system undue burden or expense.

https://www.cbssports.com//padres-tommy-pham-sues-strip-/

While the facts of this case are a bit convoluted (borrowing of a vehicle by someone other than insured), the main point is that Geico had the opportunity to settle the claim within their policy limit of $30,000 and refused. Now they are looking at potentially having to pay millions of dollars. While this claim took place in Georgia, the California Insurance Code has a similar provision that subjects the insurance company to a bad faith claim for not accepting a reasonable policy limit settlement offer.

https://www.courthousenews.com/family-of-bluff-collapse//