Bad Faith Insurance Practices

Bad faith insurance practices occur when an insurance company unfairly denies or delays paying a legitimate claim, or acts dishonestly to avoid liability. This includes actions like refusing to investigate thoroughly, providing false information, or dismissing claims without proper cause. Such practices violate the insurer's obligation to act in good faith and fair dealing with policyholders. Customers affected by bad faith conduct may seek legal remedies and compensation for damages resulting from the insurer's misconduct.