After the accident, Commonplace Hearth recognized three potential claimants: Baldwin, Hopkins, and McCarty. Baldwin sued the Hummels and made a time-limited settlement demand for the $50,000 per-person coverage restrict. Commonplace Hearth, which managed all settlement choices beneath the coverage, rejected Baldwin’s demand. The insurer decided that each Baldwin’s and Hopkins’ claims have been more likely to exceed the $50,000 restrict, and settling with Baldwin risked exhausting the $100,000 coverage restrict, doubtlessly leaving McCarty with out recourse.
