What are insurance bad faith claims?

Insurance bad faith claims are when an insurance company has acted in an egregious, unethical, or illegal manner in refusing to fairly settle a claim. This can occur in several ways, such as if the insurer unreasonably delays the claim process, offers a payment far lower than what is owed, or even denies a claim without a thorough investigation. In Hawaii, bad faith claims are generally made against insurance companies and can include both compensatory and punitive damages. Compensatory damages are designed to make the aggrieved party whole again, while punitive damages aim to punish the wrongdoer for their actions. Although bad faith claims are only made when an insurer has behaved egregious or illegally, the process of filing a bad faith claim can be complex and stressful. An individual who believes that their insurance company acted in bad faith should consult a lawyer in order to receive guidance on how to proceed.

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What are insurance bad faith claims?

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