Bad faith claims arise when insurers fail to uphold their obligations under the insurance contract, and that failure results in harm to the insured. Insurance companies are incentivized to maximize the collection of premiums and minimize the payment of claims. Some insurers take that incentive too far and harm the interests of their policyholders. Bad faith is the primary vehicle that policyholders utilize to hold insurance companies accountable. Historical Context New York was the first state to imply a “covenant of good faith and fair dealing” in insurance [...]

One of the first steps in protecting an individual’s rights as an insured consumer is to recognize the signs of an insurance company’s bad faith acts. Nobody deserves to be left without the support of their insurance company when tragedy strikes, but it is all too common for victims to get the run around as insurance companies act in bad faith. Fortunately, consumers can avoid becoming victims of bad faith practices by familiarizing themselves with unscrupulous acts and the tactics commonly used to achieve them. What is Insurance [...]