What is an insurance company’s duty to act in good faith?

In Idaho, insurance companies are required to treat their customers and handle claims with good faith. This means that they need to act in a fair and honest manner. When an insurance company receives a claim, they must conduct an investigation in a timely manner to figure out whether it is a legitimate claim and if they will pay out any compensation. Insurers must also process claim payments without any unreasonable delay. They cannot refuse a claim simply because they do not want to pay out or because they do not believe the claim is legitimate. Instead, they must provide evidence to illustrate why the claim was denied. When an insurer denies a claim, they must provide a written explanation for the denial that is clear and understandable. When they accept the claim, the insurer must also process the payment without any unnecessary waiting periods. In addition, the insurer must not try to lead the customer to accept lower payments than what they are entitled to receive. Overall, insurance companies in Idaho are required to provide a high duty of care to their customers and act in good faith. This helps ensure that their customers receive fair treatment and get the compensation they deserve when a claim is made.

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What is an insurance company’s duty to act in good faith?

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