An insurance company that was allegedly "set up" for a claim it acted in bad faith in an auto injury case will get a chance to depose the claimant on the issue, a New Jersey appeals court says.

Monday's ruling came in a pair of consolidated suits that seek to apply in a novel context New Jersey's Rova Farms doctrine, which allows an insured to recover the full amount of a verdict above the policy limits from an insurer that, in bad faith, refused to settle.