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

In Indiana, an insurance company has a duty to act in good faith when dealing with customers and individuals connected to an insurance policy. This means that an insurance company must not take action that would intentionally deprive an individual of the benefit of an insurance policy or lead to unnecessary delay of payment. An insurance company also must not use any unfair practices that can be considered dishonest or unethical. For example, an insurance company cannot unreasonably deny benefits on a policy, even though there may be a valid basis for denial. An insurance company also cannot manipulate the terms of an insurance policy to deny benefits. An insurance company must also handle claims in a timely manner, as unreasonable delays can be considered a breach of good faith. Insurance companies must also be honest when providing information about an insurance policy and the terms of coverage. In addition, an insurance company has a duty to act in a fair and impartial manner. This means that an insurance company must not treat certain parties differently or take action that could be considered discriminatory. All parties involved in an insurance policy must be treated the same and all claims must be handled in the same manner. Overall, an insurance company in Indiana is responsible for acting in good faith when dealing with customers and individuals connected to an insurance policy. This includes not taking unfair actions, providing honest information, and treating all parties equally.

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

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