What is the difference between fraud and bad faith in insurance litigation cases?

Fraud and bad faith in insurance litigation cases refer to cases when an insurance company has acted wrongfully toward a policyholder. The differences between fraud and bad faith lie in the intent of the insurance company and the severity of the wrong. Fraud occurs when an insurance company deliberately misrepresents information or withholds vital information in order to increase their profits. This deception can include fraudulent claims processing, misapplying the terms of a policy, denial of coverage and other unethical practices. In Washington, those who are accused of fraud may face criminal charges, as well as civil penalties. Bad faith, on the other hand, occurs when an insurance company unreasonably delays or denies payment for legitimate claims. In these cases, no deception is involved; instead, the insurance company is acting in bad faith by not fulfilling their obligations. In Washington, policyholders may file a bad faith lawsuit against an insurance company if they feel they were not treated fairly. In summary, fraud in insurance litigation cases involves deliberate deception, while bad faith involves negligence or unreasonable delays in payment. Both types of cases can result in serious legal consequences for insurance companies in Washington.

Related FAQs

What is the difference between fraud and bad faith in insurance litigation cases?

Related FAQs

Related Blog Posts