Insurance Bad Faith

Insurance bad faith occurs when an insurance company refuses to honor its obligations to policyholders or mishandles claims in a manner that is unethical, unreasonable, or contrary to the terms of the policy.
Insurance companies have a legal duty to act in good faith and deal fairly with their policyholders. When they fail to do so, they can be held liable for the harm caused by their actions.

There are many different examples of insurance companies acting in bad faith, including, but not limited to:

- Denying a claim without just cause;
- Delaying payment;
- Underpayment of claims;
- Misrepresentation;
- Failure to investigate; and
- Failure to defend.