BEST California Bad Faith Insurance Attorneys Near You

In California, many people pay insurance premiums to ensure they’re protected in case of an accident, whether it is a slip and fall accident, car accident, or pedestrian accident. Through homeowners, car, or commercial property insurance, individuals believe they are protected when they purchase a policy and pay the premium. These policies provide peace of mind, as they’re meant to cover damages and pay victims if the policyholder is found responsible for causing any injuries that resulted from an accident. However, insurance companies also have their own interests to protect, which mainly consists of maximizing their profits. One way insurance companies manage to do this is by denying claims they consider fraudulent or inappropriate. When insurers deny or do not respond to valid insurance claims so that they can avoid paying, it can cross into what’s often known as bad faith insurance practices. Which is essentially a breach of the trust policyholders place in their insurance providers to act fairly and in good faith.

At Levinson Law Group, our insurance claims lawyers have extensive experience in holding insurance companies accountable when they fail to uphold their responsibility of compensating accident victims in California. Our team of bad faith insurance attorneys near you understands the tactics insurers may use to deny or delay legitimate claims, leaving victims without the compensation they need for medical bills, lost wages, and other damages. We are dedicated to protecting the rights of those who have been impacted by bad faith practices, fighting to ensure that insurance companies meet their obligations. With a commitment to justice and a deep knowledge of California insurance law, Levinson Law Group diligently advocates for personal injury accident victims to receive the full compensation they deserve.

On this page:
What is Bad Faith? | Examples of Bad Faith Practices By Insurance Companies | How Is Bad Faith Determined in CA for Insurance Companies?

What is Bad Faith?

Bad faith insurance practices occur when an insurance company fails to honor its obligations under an insurance policy they have sold, violating the trust policyholders place in it. At its foundation, insurance coverage is a contract between the policyholder pays premiums, and in return, the insurance company agrees to:

• Provide coverage
• Uphold the terms of the policy
• Pay valid claims as stipulated

Legally, insurance companies are required to act in good faith, which means they must handle any insurance claims they receive fairly, promptly, and without unreasonable denial or delay.

When an insurance company unreasonably refuses to fulfill these duties, it is considered acting in “bad faith.” This can happen in various situations. However, bad faith practices are not only unethical, but also violate the legal duty of fair dealing and good faith that insurance companies owe to their policyholders. Bad faith practices can leave policyholders financially burdened when unable to return to work due to their injuries, and deprived of the protection they paid for, making it very important for California accident victims to understand their rights and hold insurance companies accountable.

Examples of Bad Faith Practices By Insurance Companies

Under California law, certain acts and behaviors by insurance companies are specifically defined as “bad faith” practices. Bad faith refers to an insurer’s unreasonable failure to honor its contractual obligations to policyholders, who have the right to fair treatment and prompt, proper handling of their filed insurance claims. When insurance companies fail to meet these standards, they can be held accountable for bad faith practices under California law. Common examples of insurance companies acting in bad faith include:

• Misrepresenting facts or policy provisions to the person filing the claim
• Failing to provide a prompt or reasonable justification for denying a claim
• Unreasonably denying policy benefits
• Failing to respond or act promptly regarding a claim
• Lacking reasonable standards for the prompt investigation and processing of claims
• Failing to approve or deny claims within a reasonable timeframe after receiving adequate proof of loss
• Refusing to make a good faith effort to settle claims when liability is reasonably clear, or not settling one part of a claim to influence other parts
• Compelling the insured to litigate by refusing to offer an adequate settlement
• Attempting to settle for an unreasonable amount compared to promotional materials provided during the application process
• Using an application altered without the insured’s knowledge or consent to settle claims
• Threatening to appeal an arbitration award to coerce the insured into accepting a lower settlement
• Advising claimants not to hire an attorney
• Misleading a claimant regarding the legal deadline for filing a claim or lawsuit

Each of these actions made by an insurance company after a claim has been filed undermines the policyholder’s right to fair treatment, and California law offers legal recourse for those impacted by such practices.

How Is Bad Faith Determined in CA for Insurance Companies?

In California, an insurance company’s actions are deemed to be in “bad faith” when the company unreasonably denies, delays, or mishandles a valid claim. Therefore, to determine if an insurance company is acting in bad faith, courts will look at whether they breached their legal duty to act in good faith and fair dealing with its policyholders. Not every accident claim denial qualifies as bad faith. Most often, bad faith is identified by a pattern of unreasonable conduct. This may include actions like denying a claim without cause, failing to provide legal defense when required, or misrepresenting the terms of a policy.

Here are the factors that courts consider when determining if an insurer has acted in bad faith in California. If you suspect an insurance company is purposefully meeting one of the below criteria, don’t hesitate to contact one of our bad faith insurance attorneys near you at Levinson Law Group.

• Unreasonable Claim Denial – If you file a claim after being injured in an accident, and it is denied without a clear or valid explanation, it may be a sign of bad faith. Insurance companies sometimes use complex language or vague terms to justify denials, hoping that you don’t realize their reasoning is invalid. Consulting with one of our bad faith lawyers can help determine if the denial is unjust.
• Failure to Defend – If you’re at fault in an accident and face a lawsuit, your insurance company is obligated to provide a legal defense per your insurance policy. When they neglect this duty, it may be an indicator that they are acting in bad faith.
• Unwarranted Fraud Accusations – Accusations of fraud without evidence when filing a claim can indicate bad faith. Insurance providers will sometimes use these accusations to justify claim denials, where they often reference policy clauses about misrepresentation. Knowing your rights by contacting one of our bad faith insurance attorneys can help in countering unjust allegations.
• Unreasonable Delay – Insurance providers must promptly assess all filed claims, especially in urgent situations like damage to their home or motor vehicle accidents. If an insurer intentionally delays the claims process, it may be an attempt to avoid paying the victim in a timely manner, which is a common bad faith tactic.
• Policy Rescission or Cancellation – Insurance companies may rescind or cancel policies under certain conditions. However, if a policy is canceled to avoid a claim payout, it may constitute bad faith. If you suspect your policy was unfairly canceled to dodge paying a valid claim, legal action may be necessary.

The tactics used by insurance companies not only delay the resolution of claims but also risk other coverages lapsing, leaving policyholders vulnerable. If you suspect bad faith practices, don’t hesitate to seek help from one of our bad faith lawyers near you. A bad faith insurance attorney can advocate on your behalf, ensuring your rights are protected and helping secure the compensation you deserve. To learn more about your options, call The Levinson Law Group at 760-388-6480.