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The question of whether an automobile accident victim should be allowed to bring a claim for punitive damages for unfair settlement practices against another person's liability insurer — a so-called third-party, bad faith suit — has become an important policy concern.This book examines the compensation that automobile insurers paid to accident victims in California during a period, 197 | The Effects of Third-Party Bad Faith Doctrine on Automobile Insurance Costs and Compensation SÊ The Effects of Third-Party Bad Faith Doctrine on Automobile Insurance Costs and Compensation Angela Hawken Stephen J. Carroll Allan F. Abrahamse Prepared for the RAND Institute for Civil justice RAND INSTITUTE FOR CIVIL .