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3916 In a bad faith claim against an insurer based on the insurer's conduct in handling the insured's first party underinsured motorist claim, damages may include economic loss or emotional distress resulting from the carrier's failure to deal with the insured in good faith, but damages cannot be measured by the underinsured motorist's liability to the insured, since damage caused by the underinsured motorist occurred prior to the insurer's bad faith and could not have been caused by it; there is no requirement that the amount of damages caused by an insurer's bad faith in handling an underinsured motorist claim be determined by arbitration.CitationSTATE FARM v SUPERIOR COURT (Bad Faith Damages) 123 CA4 1424 [See: InsC 11580.2; Neal v Farmers 21 C3 910; Cothron v Interinsurance Exchange 103 CA3 853]
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