Insurance Bad Faith

Insurance companies are obligated by each and every contract into which they enter to act in good faith and in the best interest of the insured.  Specifically, an insurance company is required to make the insured whole to the extent possible under the existing policy. The terms and conditions of an insurance policy should be unambiguous and should not contain any loopholes that would allow an insurer to improperly reject the claims of the insured or to escape its obligation to compensate. Where a denial of benefits is unjustifiable, the insured should not accept an offer from the insurer to settle for a meager amount.  If an insurer has acted in bad faith, the insured will be entitled to the amount due under the policy for the loss suffered as well as additional damages.