Ill. Pattern Jury Instr. (Civil) 710.01

Faith-- - Definition of Reasonable Probability

In handling the claim of [name of person/claimant] against [name of insured] under the

insurance policy issued by [name of insurance company], it was the duty of [name of insurance

company] to exercise [good faith] toward the interests of [name of insured].

An insurance company has a duty to settle a claim brought by a third party against its

insured within its policy limits when there is both a reasonable probability of a finding of liability

and a reasonable probability of a recovery against the insured in excess of the limits of the policy’s

coverage. This duty does not arise until the third party demands settlement within the policy limits.

[“Good faith” means that [name of insurance company] was required to give as much

consideration to [name of insured]'s interests as it gave to its own interests. A failure to exerc ise

good faith is known as “bad faith.”]

The term “reasonable probability” means that the entry of both a finding of liability and

the recovery of damages in excess of policy limits in favor of [name of injured person] and against

[name of the insured] we re at least more likely than not at the time that [name of insurance

company] received [name of injured person]’s demand for settlement within policy limits.