Insurance bad faith occurs when an insurance company fails to fulfill its obligations to its policyholders in good faith. This can include denying valid claims, delaying payments, or failing to investigate claims properly. Denied claims are those that have been rejected by the insurance company, often without a valid reason. Insurance litigation is the process of resolving disputes between insurance companies and policyholders through the legal system.
Insurance bad faith can have serious consequences for policyholders. When an insurance company denies a valid claim, it can leave the policyholder with significant financial losses. In some cases, insurance bad faith can also lead to emotional distress and other damages. Insurance litigation can be a complex and time-consuming process, but it can be an effective way to resolve disputes and hold insurance companies accountable for their actions.