Legal Question in Insurance Law in California

Bad faith - Good Faith. What they are.

The law requires insurance companies to treat claimants and insureds fairly. When dealing with the people who buy their policies (insureds) companies that sell insurance have an implied contractual clause to treat their insureds fairly. This is an implied "covenant of good faith". If they do not deal fairly with their insureds then they have acted with "bad faith".

Some States laws make the duty of good faith extend to accident victims who ask the responsible parties insurance company to make them whole by paying their damages. In these states, insurance companies owe a duty to 3rd party claimants to act in good faith. This is a very complex area in the law and each fact pattern needs analysis by a lawyer. You should contact a lawyer if you feel an insurance company is not treating you fairly. Sometimes punitive damages can be recovered when an insurance company does not treat you fairly - but not always. Protect your rights. Call a lawyer. The call is usually free.