Insurance Bad Faith
Insurance companies have special duties to their customers (insured). With few exceptions, they are required to pay claims, pay them in a timely manner, pay a fair amount for the claims made, and deal fairly with their insureds. There are other special duties that insurers have to their insureds.
When a company wrongfully denies a claim, or wrongfully delays payment, that insurance company has committed "bad faith" to its insured. The most common example is when someone's car is stolen and an insurance company denies the claim for a bogus reason. It is important for insureds in those instances to consult with an attorney in order to take appropriate action.
There are many other examples of bad faith. For instance, many times an insured is in an accident. The victim of that accident sues the insured. However the insured is only covered up to the limits of their policy. If the insurance company unreasonably fails to settle the claim for policy limits, and hence making the insured pay the rest of the damages, that company may be liable for bad faith.
Damages in bad faith cases vary from case to case and are decided by a judge or jury. Awards may be very high, because insurance companies have that special duties to an insured.
If you think your insurance company is not being fair to you, please call our office for a consult.
Links: http://badfaithinsurance.org or http://inscobadfaith.com