Do I have a case? What constitutes “bad faith”?
- In 1990, the Pennsylvania Legislature enacted the “bad faith statute.” Essentially, the statute requires that an insurance company take reasonable steps in dealing with an insurance claim under a contract of insurance, such as auto or homeowner’s policy. Bad faith is a very complex area of the law. Bad faith refers to dishonesty or fraud in a transaction, such as entering into an agreement with no intention of ever living up to its terms, or knowingly misrepresenting the quality of something that is being bought or sold. It may involve the intent to deceive or mislead you in order to gain some advantage. It is often related to a breach of the obligation inherent in all contracts such as paying claims, or issuing a cancellation under an insurance policy.
- Insurers may be guilty of bad faith for:
- Failing to promptly and thoroughly investigate a claim;
- Unreasonably delay payment;
- Unreasonably deny benefits to a claim
- Using unreasonable interpretations in translating a policy language;
- Refusing to settle the case or reimburse you for the entirety of your loss.
Each year, we win our clients millions of dollars in compensation. If your insurance company failed to fairly handle your claim, lets us help you recover the money you deserve.
