Insurance Bad Faith

Pursuant to Insurance Code Section 790.03, Insurance companies are prohibited from using unfair and deceptive practices in the course of their business. One of those unfair tactics is failing to provide a settlement in good faith when liability has become reasonably clear. In addition, insurance companies are prohibited from forcing claimants to initiate a lawsuit by purposefully offering an unreasonably low settlement amount. These code sections apply to all types of insurance, including homeowner’s insurance, automobile insurance, commercial insurance, long term care insurance, life insurance, and health insurance.

Despite the law specifically addressing these issues and prohibiting insurance companies from dealing in bad faith, Insurance Companies still regularly deny valid claims. An experienced attorney will be able to recognize when a cause of action has been created based on the unfair dealings of insurance companies. If in fact the Insurance Company has denied a claim in bad faith, the claimant may be entitled to a settlement amount well in excess of the original claim.

While these claims may seem intuitive, claimants need an attorney who is well versed in insurance language to examine whether or not a breach of good faith has occurred. These claims often lead to complex litigation, requiring extensive legal analysis and legal work.

At Gilburg, we offer a Free Consultation to evaluate whether you have been the victim of Insurance Bad Faith. Once we have determined that there is a potential cause of action, we handle these claims on a contingency basis, meaning there are no fees up front and legal fees are only paid at the end of the case if there is a settlement or verdict.