In Pennsylvania, the state’s insurance regulations set forth the duties of insurers to policyholders, including the duty to act in good faith and to deal fairly with policyholders. This includes conducting a reasonable investigation of a claim and promptly paying benefits owed under the policy. If an insurer fails to do so, it may be held liable for bad faith conduct.
In each of these states, insurers that engage in bad faith conduct may be liable for damages, including emotional distress, inconvenience, and the policyholder’s attorney’s fees. As such, it is important for policyholders to understand their rights and to be aware of the laws and regulations governing insurer bad faith conduct.
As policyholders, it is important to remember that insurers have a duty to act in good faith and to deal fairly with policyholders.