Bad Faith
Insurance Glossary
A legal claim that an insurer failed its duty to handle a claim honestly and fairly, through conduct such as an unreasonable denial, unexplained delay, or refusal to investigate. What qualifies is defined by state law and court decisions, and most states also have unfair claims settlement practices rules that regulators enforce separately from any lawsuit. Available remedies vary widely by state, and a denied claim is not by itself evidence of bad faith.
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