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

In an insurance dispute in Idaho, the term “bad faith” refers to the unethical behavior of an insurance company. This unethical behavior can include denying a valid claim, failing to provide a prompt response, providing false information, failing to provide settlement offers, or attempting to delay or deny payment. In Idaho, an insurance company is obligated by law to act in good faith when dealing with its customers. If an insurance company is found to be acting in bad faith, a court could find them liable for the insured’s losses. An insured who has their claim denied in bad faith could be awarded damages, which could include the cost of their medical bills, the cost of their attorney’s fees, and any other damages they suffered as a result of the insurance company’s bad faith. In short, bad faith means an insurance company is not fulfilling its legal obligation as a fiduciary to treat its customers fairly and honestly in order to protect the insured’s interests. Idaho law holds insurance companies to a high standard of conduct and they must abide by the terms of their policy or face liability for damages.

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

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