What is Insurance Bad Faith?
Insurance bad faith refers to an insurance company’s attempt to renege on their obligations to their policyholders. It can take many forms such as refusing to pay for a legitimate insurance claim, delaying payment, or simply refusing to investigate a case.
In some cases, insurance companies resort to misrepresenting the language in their insurance contract and using that technicality to reduce their payout or deflect liability. They can also act in bad faith by not disclosing key limitations or exclusions of the insurance policy at the time of purchase.
Other forms of bad faith insurance may include paying only partial benefits, deliberately letting policies lapse without notice, or making unjustified requests for evidence or documentation.
It is worth noting that simple mistakes do not constitute bad faith insurance. You can have an attorney assess your case to guide you on whether you have been a victim of bad faith insurance and what steps you can take to protect your rights.
