in most cases

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The laws are already in place and, in most cases, the penalties are sufficient.
Regardless of which test they follow, most courts in most cases examine whether a liability insurer has fulfilled its duty of good faith and fair dealing in settlement by comparing (1) the amount of the policy limits, (2) the likelihood that the insured would be found liable, and (3) the amount or range of damages reasonably likely if the claim was not settled.
In most cases, these individuals are in the process of obtaining permanent eligibility and are protected by law.