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

In North Carolina, an insurance company has a legal duty to act in good faith towards their customers. This is known as the duty of good faith and fair dealing. The duty is placed upon the insurance company to ensure that they are not acting in a way that is unfair to the customer and that they are treating them fairly. In order for the insurance company to fulfill their duty of good faith, they must refrain from using fraudulent or deceptive practices when dealing with their customers. This means that they must be truthful in their advertising, their policies, and in any other agreements that they enter into with their customers. They must also act fairly when evaluating customer claims, making sure that they are addressing the customer’s needs in an honest and reasonable manner. Additionally, the insurance company must also act expeditiously when processing their customer’s claims, and must not delay the process. They must also be sure to properly evaluate the customer’s needs and be sure to provide them with the coverage that they need. By acting in good faith, insurance companies are able to build trust and establish a strong relationship with their customers. This also helps to ensure that customers are making an informed decision when it comes to their insurance coverage. By following their duty of good faith and fair dealing, insurance companies are able to provide their customers with the coverage that they need and provide them with a positive experience when purchasing insurance.

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

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