There are occasions when your insurance company handles your claim in a manner that constitutes “bad faith.” Your insurance company owes you the duty to treat you fairly and in good faith.
In short, an insurance company cannot:
Misrepresent the terms of a policy;
Misrepresent the advantages or benefits of a policy;
Misrepresent a material fact or policy provision;
Fail to attempt in good faith to reach a fair settlement of a claim;
Fail to provide a reasonable explanation for the denial of a claim;
Fail within a reasonable time to affirm or deny coverage or submit a reservation of rights;
Refuse to pay a claim without conducting a reasonable investigation with respect to the claim.