What is required for an insurance company to act in good faith?

For an insurance company to act in good faith, they must comply with state law and abide by the terms of the insurance policy. In West Virginia, insurance companies must act responsibly, fairly, and in good faith when handling claims. When examining an insurance claim, the insurer must do so with due care and attention to ensure that the resolution process is thorough, prompt, and efficient. The insurer must conduct a timely and complete investigation of the records and facts associated with the claim. This includes allowing the insured to provide statements, documents, and records that are relevant to the claim. Furthermore, the insurer must promptly provide a response to the claim, clearly state their decision, and provide an explanation for any denial of the claim. They must also treat the insured with respect and courtesy at all times. Lastly, the insurer must not attempt to intimidate, threaten, or unjustly influence the insured. This includes attempting to persuade the insured to accept an undervalued settlement or making misrepresentations of the policy’s benefits. In keeping with these expectations, the insurer must continue to act in good faith throughout the duration of the claims process.

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What is required for an insurance company to act in good faith?

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