Insurance Claim Denial

The subject of insurance bad faith is extremely broad and can only be briefly touched upon here. Generally speaking, "bad faith" signifies a breach of what is known as the covenant of good faith and fair dealing that is implied in every contract formed in California, including an insurance contract. The breach of this covenant requires "unfair dealing" as opposed to just a mistake. Most bad faith actions in California are what is referred to as "first party bad faith lawsuits." This type of action involves an insured's claim against his or her own insurance company, and arises in situations where the insurance company unfairly and without proper cause, fails to compensate the insured for a loss covered by the policy, or unreasonably delays making payments due under the policy. Examples of these claims include:

1) Claims under life, health and disability insurance
policies;

2) Claims for damages to an insured's property under a
homeowner's insurance policy; and

3) Claims for damages to an insured's motor vehicle under
collision or comprehensive coverages of an automobile
policy; and

4) Refusal to defend an insured against a third party
claim which is covered under the insured's policy.

If you believe you have been the victim of insurance bad faith, we invite you to contact Sutton & Jacobs, LLP and make an appointment to speak with an attorney about your case. You can contact us by clicking the e-mail icon on this page.

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