N.C.P.I.—Motor Vehicle 106.92

NOTE WELL: Use this instruction only in conjunction

with claims for relief arising prior to January 1, 1996.

Claims for relief arising on or after January 1, 1996 are

governed by N.C. Gen. Stat. § 1D-1 et seq., effective

January 1, 1996. For such cases, use N.C.P.I.-Motor

Vehicle 106.96.

The (state number) issue reads:

"Did the defendant refuse in bad faith to settle the plaintiff's

insurance claim?"

You will answer this issue only if you have answered the (state

issue number) "Yes" in favor of the plaintiff.1

On this issue the burden of proof is on the plaintiff. This means

that the plaintiff must prove, by the greater weight of the evidence, three

things:2

First, that the defendant failed to pay the plaintiff's insurance claim

after recognizing it as valid.

Second, that the defendant's failure to pay was intentional, in bad

faith and not due to innocent mistake or honest disagreement.3

Third, that the defendant's failure to pay was accompanied by

aggravating or outrageous conduct. Aggravating or outrageous conduct

may include one or more of the following: fraud, actual malice,

oppression, a gross and willful wrong, insult, rudeness, indignity or a

reckless or wanton disregard of the plaintiff's rights.4

Finally, as to this issue on which the plaintiff has the burden of

proof, if you find by the greater weight of the evidence that the

defendant refused in bad faith to settle the plaintiff's insurance claim,

then it would be your duty to answer this issue "Yes" in favor of the

plaintiff.

If, on the other hand, you fail to so find, then it would be your duty

to answer this issue "No" in favor of the defendant.5