Being involved in an accident of any kind can certainly have a devastating impact on a person’s life and getting financial assistance to recover is imperative, particularly from an insurance company. However, when an insurance company fails to fulfill their obligation and does not act in such a way that is required in a contract, it can be considered “bad faith,” which is legally defined as an intentional dishonest act that does not fulfill legal or contractual obligations, misleads another, and violates basic standards of honesty in dealing with others. Bad faith insurance law is a patchwork of federal and state laws and case decisions that pertain to the practices and conduct of insurance companies.
Examples of bad faith practices can come from insurers of all types, including auto, business, and property insurance. Here are a few common scenarios which may represent bad faith: