An excess insurer also doesn't have to initiate settlement negotiations, says the 10th Circuit.

The insured dump-truck owner brought an action against its excess liability insurer, alleging that the insurer breached its policy and duty of good faith and fair dealing by not investigating claims against the insured, and by refusing to tender its policy limits to spur settlement negotiations in an underlying action.

At a rail crossing in Oklahoma, a Union Pacific Railroad train hit an SRM Inc.-owned dump truck as the truck crossed the tracks. The collision killed the truck driver and derailed the train, causing extensive damage to the train and injuring three of its workers. The three injured train workers sued SRM.

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