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When you purchase an insurance policy, you depend on the insurance carrier paying out for valid claims. But what happens if the insurance carrier refuses to pay a claim? To be sure, there are times when insurance carriers rightfully deny a claim. However, there are cases when insurance carriers practice what is called bad faith, and that is certainly a problem. Here, we want to discuss what constitutes a bad faith insurance claim in California.
All insurance is based on a contract. In exchange for the policyholder paying their premiums, insurance carriers have a legal duty to provide coverage based on the terms of the insurance policy and pay valid claims. However, insurance is also a business in California. It is not uncommon for insurance carriers, in an effort to increase their profits, to deny valid claims or offer to pay far less than the claim is worth.
When this occurs, insurance carriers could be guilty of bad faith insurance practices, and it may be possible to hold them accountable through a bad faith insurance lawsuit.
Bad faith exists anytime an insurance carrier unreasonably fails to uphold its end of the bargain. Not every insurance claim denial or low settlement offer is going to be a case of bad faith. However, California law does define certain acts or conduct that can qualify as bad faith on the insurance carrier. This includes:
These are just some examples of what could constitute insurance bad faith in California. Every alleged case of bad faith is unique, and it is very important for individuals who feel they have been mistreated by their insurance company to work with an attorney. An attorney will be able to review the terms of the insurance policy as well as the circumstances of the situation to determine whether or not there is a viable claim.
There are various possible remedies available if an insurance carrier has indeed committed bad faith:
The potential remedies available to claimants in these situations will vary depending on the circumstances surrounding their particular case.
Contact our Anaheim personal injury attorneys today.
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