Bad Faith Insurance Claims In California

The following article will cover:

• Examples of bad faith insurance practices in California.
• The recourse available to policyholders who suspect their insurance company is acting in bad faith.
• The successful litigation of cases involving bad faith insurance practices.

What Are Some Examples Of Bad Faith Insurance Practices That Occur In California?

One common example of bad faith insurance practices is when insurance companies wrongfully accuse their policyholders of fraud. This is often referred to as "material misrepresentation" in your policy. The insurance companies attempt to intimidate policyholders, causing them to back down from their claims. In our experience, around 95% of the time, insurance companies don't possess the necessary evidence to substantiate these fraud allegations.

Although policyholders may be reported to the California Department of Insurance, these claims are rarely prosecuted. Essentially, these accusations are often baseless, intended only to evade paying out a claim. This practice of wrongful denial for alleged fraud is widespread across the state, and it represents one of the most clear-cut examples of bad faith in California.

Fortunately, we have successfully litigated many such cases, securing our clients the rightful claim benefits as well as substantial additional damages for emotional distress and pain and suffering.

What Recourse Do Policyholders Have If They Suspect The Insurance Company Is Acting In Bad Faith?

If policyholders suspect that their insurance company is acting in bad faith, the first course of action is to report the insurer to the Department of Insurance. However, the most effective step they can take is to file a lawsuit and seek representation from an attorney who is unafraid to confront insurance companies and hold them accountable for their actions. This is precisely what we aim to achieve for our clients every day at our office. For more information on Filing Bad Faith Insurance Claims In California, an initial consultation is your next best step.