It’s important to recognize that no insurance company has an inherent duty to settle every claim. The insurer has a responsibility to investigate and decide whether the policyholder is liable or not. If there’s evidence that the policyholder isn’t liable, it will deny the claim. This means if your claim is denied, it’s not necessarily wrong or unfair. You should talk with an attorney about the denial and how to appeal it through the administrative process or file a lawsuit.
Also, even if the insurer agrees the policyholder is liable, it might not settle the claim. It depends on how much the claimant asks for. If you are demanding compensation that significantly exceeds the policy limit, the insurer doesn’t have a duty to agree to that amount. The insurer can and will try to reach a settlement agreement below the policy limit. It will only agree to an amount over the policy limit in certain, rare circumstances.