What Is Bad Faith?
Bad Faith is an insurer’s unfair or dishonest handling of an insurance claim, such as ignoring relevant evidence, delaying review without a sound reason, or refusing payment without a reasonable basis. In an uninsured motorist claim, bad faith concerns the insurer’s conduct during claim investigation, evaluation, negotiation, or resolution.
Quick Facts About Bad Faith
Category
Insurance claim conduct
Used for
Reviewing insurer handling
Common confusion
A denied claim is not automatically bad faith
Also called
Insurance Bad Faith, Insurer Bad Faith
Often discussed with
Uninsured Motorist Claims
Key Takeaways About Bad Faith
- Bad faith concerns insurer conduct, not simply an unfavorable claim decision.
- Claim records can show how the insurer investigated and evaluated the loss.
- Bad faith is not the same as ordinary negligence or a disputed claim.
How Bad Faith Works
Bad faith describes conduct that falls below fair claim handling during an insurer’s review of a loss. The review may include requests for records, assessment of fault, evaluation of injuries, and settlement discussions. A disagreement about value does not by itself establish bad faith.
Related glossary terms: Settlement Demand, Damages.
In an uninsured motorist claim, the claim file can show what information the insurer received and how the insurer responded. Relevant evidence may include medical records, crash reports, witness statements, policy terms, and written communications. Uninsured Motorist Coverage applies under the policy’s terms, while Claim Investigation focuses on how the insurer examined the available information. The issue turns on the conduct shown by the record and the circumstances surrounding the decision.
From the Atlanta Auto Law team
When we review an uninsured motorist claim, we compare the insurer’s communications and decisions with the evidence available at each stage. We track requests, responses, policy positions, and settlement discussions. Our team separates a good-faith coverage or value dispute from conduct that may show unfair claim handling.
Bad Faith in Practice: A Real-World Example
A driver carries uninsured motorist coverage after a crash with an unidentified or uninsured driver. The insurer receives medical records and a crash report, then rejects the claim without addressing material evidence or explaining its position. That pattern may support a bad-faith inquiry, depending on the full claim record.
Related Services
Related Terms
Settlement Demand
A settlement demand is a written request for an insurance company or opposing party to pay…
Damages
Damages are the money a claimant seeks or a court awards to address losses caused by…
Atlanta Auto Law
Have Questions About Bad Faith?
Contact Atlanta Auto Law for practical guidance on Bad Faith and related personal injury attorney work in Atlanta.