What is insurance company good faith?
• A: The law requires any insurance company to act on good faith and deal fairly with their customers. They can’t make up reasons to deny a claim when it it specifically says it will provide coverage in your policy manual. Each claim must be looked at individually and fairly when deciding to pay for it. In many cases, the language in the policy is confusing or not very clear. Judges usually rule in favor of the insured person and make the insurance company pay the claim and, perhaps, related costs.