What is insurance bad faith?
Bad faith occurs when an insurance company unreasonably denies, delays, or undervalues a valid claim. Insurance contracts include an implied duty of good faith and fair dealing under the law.
How do I prove bad faith?
You must show the insurer lacked a reasonable basis for its conduct. Evidence may include the claims file, internal communications, pattern evidence of similar conduct, and expert testimony about industry standards.
What damages can I recover in a bad faith case?
Policy benefits owed, emotional distress, attorney fees, and in egregious cases, punitive damages. Some states allow recovery beyond policy limits for bad faith conduct.