What is Insurance Bad Faith?

aboutbanner

Insurance bad faith is against the law here in California.  When an insurance company denies a valid claim, or attempts to confuse the policy holder or outright mislead them as to what is actually covered under the contract insurance bad faith may exist.  The denial of a policy claim isn’t enough on its own.  The claim must be a valid claim under a valid (current/paid) policy and covered by the terms of the insurance policy itself.  The failure to cover a valid claim may not in and of itself rise to “bad faith,” but the Watkins Firm is able to negotiate on your behalf and file a breach of contract lawsuit to force compliance with the terms of the policy.

If the insurance company attempts to settle in an unfair manner for much less than the actual value of the claim there may be an issue of bad faith.  Other areas that might rise to the level of a bad faith action include, but are not limited to:

  • Any attempt to use one portion of a claim to influence settlement of another part of a claim
  • The denial of coverage or payment for a valid claim when valid coverage actually exists
  • Failure to act on a claim in a timely manner
  • Failure to provide valid written reasons for the denial of a claim in a timely manner
  • Trying to convince you, the policy holder, not to hire an attorney

Insurance bad faith cases may be more challenging than they were 10 years ago based upon changes in California law, however, insurance companies are highly regulated and unfair practices can result in financial liability for the insurance company under California contract and insurance bad faith laws.  We will review the insurance coverage and policy, your claim and all aspects of a potential case.

If you have additional bad faith questions, been unfairly denied on what you believe is a valid claim under a valid policy which is paid to date and in force, we invite you to contact us for a free consultation at 858-535-1511.