Elliott sued Pearson for $$700,000$ in damages for his injuries, which is within applicable policy limits$,$ but Pearson's insurer waged a strong defense and ultimately paid Elliott $$500,000$ and closed the claim. Elliott believes Pearson is acting in bad faith and sues Pearson for damages. Why might Elliott's attorney be eager to obtain information from Colossal's claim files on the reserve amount established for this claim?

$($Search Chapter $3)$

a$.$ A higher reserve amount might be used as evidence that the insurer thought the claim was worth more than the $$500,000$ it paid.

b$.$ A lower initial reserve amount might indicate that the insurer used bad judgment.

c$.$ The insurer might be manipulating its financial results by understating reserves.

d$.$ The reserves might be subject to a self$-$insured retention.