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December 2016 Archives

What does "bad faith" actually mean?

When you file a claim with an insurance company, that company has a legal duty to act in good faith and deal with your claim fairly. The basis for this requirement lies in the fact that the insurers' control over claims processing gives them unequal bargaining power in their relationship with their policyholders. As such, if your insurer acts in bad faith when handling your claim, you may have grounds for a lawsuit against them.

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