Yes. In most states, “bad faith” is defined as unreasonable conduct by an insurance company.
Examples of bad faith conduct include:
- unreasonable denial of an insurance claim that should have been paid;
- unreasonable failure to defend a policyholder who has been
sued under a policy containing a liability provision;
- unreasonably failing to protect the assets of a policyholder who has been sued;
- placing an insurer’s financial interests above the interests of the policyholder;
- making an insured sue in order to receive the benefits provided in the policy;
- denying a claim without conducting a reasonable investigation of the claim; or
- unreasonably attempting to under-settle or lowball the payment of a claim.
If your insurance company commits any of these acts, it may be liable for damages to you.