What does the term “bad faith” mean in an insurance dispute?

In California, the term “bad faith” has a specific meaning when it comes to insurance disputes. In California, an insurance company has a legal duty to act in good faith when honoring the terms of an insurance policy and dealing with claims related to that policy. If an insurance company acts in bad faith, they have violated this duty and have engaged in wrongful conduct. Bad faith can take many different forms. Some examples of bad faith include denying claims without any reasonable justification, delaying payment of claims without good cause, or failing to properly investigate claims. It may also include intentionally misleading the insured person or refusing to accept or respond to communications from the insured. When an insurance company has acted in bad faith, the insured person may be entitled to compensation for the harm caused by such wrongful conduct. Additionally, some courts have found that punitive damages may also be available in cases where an insurance company has engaged in egregious bad faith behavior. In California, bad faith claims are difficult to prove and require experienced legal representation. If you think that your insurance company is acting in bad faith, it is important to contact an experienced California insurance attorney to help protect your rights.

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What does the term “bad faith” mean in an insurance dispute?

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