Bad faith refers to dishonesty or fraud in a transaction, such as knowingly misrepresenting the quality of something being bought or entering into an agreement with no intention of ever living up to its terms. Insurance is, in essence, a contract; in return for premiums, the insurer agrees to indemnify and defend you if a covered event occurs, such as an auto accident. Thus, when an insurance company is accused of acting in “bad faith,” they have failed to act in a way that is required by the policy and have not fulfilled their obligations to the insured. However, not all disputes with an insurance company will be considered bad faith, and any insurer is allowed to question and investigate the claims being made against them.
There are a number of different examples of insurance bad faith claims. The following are just a few to help you determine if you may have this kind of a claim: Read the rest »