Insurance Bad Faith

Insurance bad faith refers to any claim requested by a covered individual that is wrongfully denied by their insurance provider. It’s any intentionally dishonest act that avoids fulfilling legal or contractual obligations which misleads others or violates basic standards of honesty when dealing with others.

California is generally recognized as a leader in insurance bad faith law. Many aspects of bad faith which have been adopted in the majority of states began in California. California addresses bad faith insurance conduct through both legislation and by common law.*

Examples of insurance bad faith:

  1. An insurance company denying a claim without providing a reason why
  2. An insurance company neglecting to conduct a thorough investigation into a claim
  3. An insurance company postponing the payment of a valid claim
  4. An insurance company awarding significantly less value than a valid claim is worth
  5. An insurance company declining to pay a valid claim
  6. An insurance company intentionally misrepresenting policy content or the law
  7. An insurance company ignoring requests for documentation from policy holders

Taking action:

If you believe an insurance provider has committed an act of bad faith, you MUST be able to prove that the circumstances and facts surrounding your claim stemmed from an act of bad faith. Fighting a bad faith claim is difficult, as most insurance companies have significant legal representation. We highly recommend that you don’t attempt to recover damages on your own. Contact a bad faith insurance lawyer (we happen to know some great ones!) to ensure you recover what’s rightfully yours.

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