Bad Faith Insurance

Bad faith insurance is insurance done badly. Premiums are paid to an insurance company to transfer risk in the event of an accident or natural disaster, or in the case of health insurance, a doctor visit, or operation. Failure on the part of the insurance company to fulfill claims made by the insured is bad faith insurance.

Examples of bad faith include undue delay in handling claims, inadequate investigation, refusal to defend a lawsuit, threats against an insured, refusing to make a reasonable settlement offer, or making unreasonable interpretations of an insurance policy.