What Are Some Examples of Insurance Bad Faith?

Injury Attorneys | Restoring LivesTM

As I explained in a previous video, insurance bad faith is the intentional, reckless, or malicious failure of an insurance company to abide by its policy terms in dealing with its insured or using its status as a large company to exploit its insureds.

While the courts haven’t articulated the full extent or every example of what constitutes bad faith, some examples are if there is a completely unfounded refusal to pay policy claims, so if a policy is clear and the insurance company for no reason is still refusing to pay a claim, if it delays unreasonably in paying a claim, or if it uses its power as a large company with lawyers or money or whatnot to make an insured or coerce an insured to settle a claim below its fair value based on threats of dropping coverage or something like that.

There are many other examples, but these are the most clearly articulated under Indiana law.

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