Individuals purchase insurance to gain peace of mind and security in the event of a loss. Insurance premiums are paid by the individual in exchange for a promise from the insurance company that it will pay if there is a loss. “Bad Faith” laws are designed to prevent an insurance company from abusing its position and power against a hurt individual.
A bad faith case arises when your insurance company unreasonably denies or delays payment of your claim. Your insurance company has a duty to deal with you fairly and promptly. If the company unreasonably denies your claim, or unreasonably delays payment, you have the right to recover the full value of that loss.