In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Q: to have been rejected solely on the ground that this amount had not been tendered within the time period prescribed by appellant's counsel. (emphasis added). In State Farm Mutual Automobile Ins. Co. v. Marcum, Ky., 420 S.W.2d 113 (1967), (overruled on other grounds, 531 S.W.2d 493, 500 (1976)) the Court of Appeals again addressed the issue of bad faith in the context of a failure to settle a claim for policy limits. The court, in affirming a judgment against an insurer for bad faith, noted that (a) clear liability, (b) the seriousness of the injuries sustained and (c) the failure to seize the opportunity to settle the case for the policy limits of $20,000 resulted in sufficient evidence of bad faith. Compare Harvin v. United States Fidelity & Guaranty Co., Ky., 428 S.W.2d 213 (1968) (<HOLDING>). For several years the law of Kentucky on the
Holding statements: (A) holding there can be no claim for bad faith when an insurer has promptly denied a claim that is in fact not covered (B) holding that insured may recover attorneys fees from insurer where insurer acts in bad faith (C) holding insurer not liable for bad faith when it denied insureds claim based on a good faith dispute regarding the interpretation of a rule (D) holding that no cause of action for bad faith exists when insurer has reasonable grounds to contest liability (E) holding that although courts have inherent power to dismiss bad faith litigant 707a does not provide basis for dismissal on grounds of bad faith filing
A:
holding there can be no claim for bad faith when an insurer has promptly denied a claim that is in fact not covered