Examples of bad faith by insurance companies

Most people in California have at least one type of insurance policy in their name but it is not uncommon to hold multiple insurance policies. These might include some combination of automotive insurance, homeowner’s insurance, renter’s insurance, health insurance, life insurance, and disability insurance. Regardless of the type of policy and what it is designed to cover, it is reasonable for you to expect that the insurance company will appropriately protect and compensate you when you have a legitimate claim. Unfortunately, this does not always happen.

There can be instances where an insurance company might engage in dishonest practices or act in a manner that is not fair to the policyholder. These events are referred to as bad faith in the world of insurance.

Some examples of bad faith insurance practices include the failure to properly or completely investigate a claim. The omission of some evidence may have a negative impact on the outcome for the insured. Some companies might try to offer a policyholder a settlement that is below the market value for what should be received. Investigations or processing of claims may be delayed or extended for long periods of time until a policyholder gives up on the claim altogether.

If you would like to learn more about the types of actions or situations that may constitute bad faith on the part of an insurance company, please feel free to visit our protections for insurance customers page of our California insurance bad faith website. If you have questions or need help with handling a denied claim with the insurance companies, call our Prudential life insurance denials lawyer.

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