The trial court correctly denied defendant’s Anti-SLAPP motion in this bad faith case by an insured against its insurer. The insured claimed the insurer had breached its duty of good faith by retaining conflicted counsel, failing to pay amounts owed, and misleading Trilogy regarding obligations under the policies. The insured alleged that the insurer urged or compelled defense counsel to accept settlements in cases where the insured had little or no liability, refused to hire independent counsel when the insured protested and gave defense counsel contrary instructions. This conduct was the basis of the insured’s claim, not the protected settlement negotiations. The decision distinguishes Seltzer v. Barnes (2010) 182 Cal.App.4th 953, in which the insured sued defense counsel, not the insurer.