What is Insurance Bad Faith? | Marr Law Firm

What is Bad Faith?

Insurance Bad Faith

Marr Law Firm is well recognized for its aggressive representation of policyholders and consumers in State and National litigation.

Insurance Bad Faith

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Insurance companies have a legal obligation to treat their policyholders fairly and in good faith. A breach of this legal obligation can result in a policyholder's claim being underpaid, unnecessarily delayed, or even denied entirely.

Regardless, of the type of insurance at issue in your situation, homeowner's, auto, medical, life, disability or other, if an insurance company has chosen to ignore its obligation to treat its policyholder fairly and in good faith, it may be sued for damages, emotional distress and punitive damages.

The following excerpts provide a good overview as to the conduct insurers engage in which provide evidentiary support for an actionable claim of bad faith.

Any of the following acts by an insurer, if committed in violation of Section 1250.3 of this title, constitutes an unfair claim settlement practice exclusive of paragraph 16 of this section which shall be applicable solely to health benefit plans:

  • Failing to fully disclose to first party claimants, benefits, coverages, or other provisions of any insurance policy or insurance contract when the benefits, coverages or other provisions are pertinent to a claim;
  • Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverages at issue;
  • Failing to adopt and implement reasonable standards for prompt investigations of claims arising under its insurance policies or insurance contracts;
  • Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear.

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