Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Bad faith insurance law in California protects policyholders from unfair or dishonest practices by insurance companies. When you buy an insurance policy, such as auto, health, home, or life insurance, your insurer is legally required to act in good faith and deal fairly with your claim. If your insurance carrier acts unreasonably, delays payment, or unfairly denies a valid claim, it may be acting in bad faith. California law provides policyholders with legal avenues to hold insurance companies accountable, recover benefits owed, and, in some cases, receive compensation for additional damages resulting from the insurer's wrongful conduct.
Seeking the help of an attorney can be crucial if you believe your insurer is acting in bad faith. Common scenarios where legal assistance may be necessary include:
An experienced attorney understands the intricacies of California’s bad faith laws and can help you build the strongest case, negotiate with the insurance company, or take your case to court if necessary.
California has some of the most robust protections for policyholders in the United States. Key aspects of local law include:
Bad faith insurance occurs when an insurance company unreasonably refuses to pay a valid claim, delays payment without good reason, or otherwise fails to fulfill its obligations under an insurance policy.
Indicators of bad faith may include unexplained claim denials, repeated requests for unnecessary information, unreasonably low settlement offers, or delays without justification. If you are unsure, consult with a legal professional.
Yes, if you believe your insurer has acted in bad faith, you may be able to file a lawsuit to recover the benefits owed and, in some cases, additional damages.
You may be entitled to the benefits due under your policy, compensation for emotional distress, additional financial losses caused by the insurer’s conduct, and sometimes punitive damages.
Document all communications with your insurer, keep records of your claim and related expenses, and seek advice from a consumer attorney experienced in bad faith insurance cases.
Generally, you have two years from the date of bad faith conduct to file a lawsuit, but some factors could shorten or extend this deadline. Consult a lawyer as soon as possible to avoid losing your rights.
While not required, having an attorney increases your chances of a fair outcome. Insurance law is complex, and insurance companies have legal teams to protect their interests.
Yes, bad faith provisions apply to most insurance policies sold in California, including auto, home, health, disability, and life insurance.
If a denial was based on error, you can appeal and provide additional information. If the insurer refuses to reconsider, or still denies unreasonably, it could amount to bad faith.
Typically, lawsuits are filed against the insurance company, not your agent. However, in some cases where the agent acted illegally or misrepresented your policy, they could be held responsible.
If you need more information or support, the following resources may be helpful:
If you believe you are a victim of bad faith insurance in California, gather all documents related to your policy and claim, including communications, denial letters, and receipts. Write down a timeline of events and your interactions with your insurer. Consult a local attorney who specializes in bad faith insurance cases as soon as possible. They can evaluate your claim, inform you of your rights, and develop a strategy to seek compensation. If you need help finding an attorney, consider contacting the State Bar of California or a local legal aid group. Taking prompt action will protect your legal rights and improve your chances of a successful outcome.
