Assume that Maria has automobile liability insurance in the amount of $250,000. Maria causes an accident (it is Maria's fault). The other driver offers to settle the matter for $100,000 in damages. Maria's insurance company refuses to settle and takes the case to trial.

Using the facts above:

1. Provide an example of an outcome at trial where the insurance company would not potentially be liable for first-party bad faith.

2. Provide an example of an outcome at trial where the insurance company would potentially be liable for "first-party" bad faith.