Although insurance companies have to act in good faith toward their policyholders, the company may fail to do so in some cases. This means the insurer is acting in bad faith toward a policyholder. Some examples of insurance bad faith practices include:
Failing to answer claim questions promptly by delaying responses.
Changing details of a policy without informing policyholders.
Failing to provide a full payment amount as described under the insurance policy.
Not engaging in a proper investigation.
Failing to process a claim.
Misrepresenting coverage information, benefits information, or policy information.