Insurance Bad Faith.
Insurance companies owe a duty of good faith and fair dealing to their insureds.
In other words, an insurance company is charged with the obligation to place the needs of its policyholders before its own, and to find a way to provide coverage as opposed to finding a way to deny coverage. This duty is defined under the Fair Claim's Practices Act, statutes and case law, and is implied by law into each policy of insurance. An insurance company that fails to honor its obligations to its policyholders can be sued for breach of the duty of good faith and fair dealing. Unreasonably delaying payment on an insusrance claim. Unreasonably denying an insurance claim.