USA Herald — Insurance bad faith is a legal concept that applies when an insurance company fails to act in good faith and fair dealing when handling a claim made by one of its policyholders. In Florida, policyholders who believe that their insurance company has acted in bad faith may be able to file a lawsuit against the company to seek compensation for their losses.
Under Florida law, insurance companies are required to act in good faith and to treat their policyholders fairly. This includes conducting a reasonable investigation of any claim made by a policyholder, evaluating the claim in a fair and honest manner, and paying any valid claim in a timely manner. If an insurance company fails to meet these standards, it may be found to have acted in bad faith.
There are several types of conduct that can give rise to an insurance bad faith claim in Florida. For example, an insurance company may be found to have acted in bad faith if it denies a claim without conducting a reasonable investigation or without providing a clear explanation for the denial. Policyholders may also have a claim for insurance bad faith if the company delays payment of a valid claim without a good reason, or if the company engages in other actions that are designed to avoid paying a claim.
