Insurance bad faith occurs when an insurance company fails to abide by the terms and conditions of the insured’s policy and willfully refuses to pay a legitimate claim. Insurance companies owe a duty of fair dealing with the persons they protect. If insurance companies violate good faith, the insured person may sue the insurance company.
Bad faith insurance claims depend on their circumstances but will most likely result in a settlement with the insurance company, an arbitration decision, or a verdict one way or another.
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