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What type of actions by an insurance company can constitute bad faith?

April 26, 2017Actions bad COMPANY constitute faith Insurance type

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What type of actions by an insurance company can constitute bad faith?

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Bad faith is another name for breach of the implied covenant of good faith and fair dealing which is a potential cause of action against an insurance company arising out of their handling of an insurance claim. Bad faith may arise if an insurance company delays in payment of a claim, fails to pay a claim, or improperly denies coverage for an insurance claim. In addition, certain statutory violations can give rise to bad faith.