• Glenfed Development Corp. v. Superior Court, 53 Cal. App. 4th 1113 (1997) This decision requires insurance companies to provide copies of their claims manuals in the course of pre-trial discovery.

• Pfizer, Inc. v. Superior Court of Orange County, 59 Cal. App. 4th 480 (1997) This decision created a precedent that insurance companies can be compelled to disclose how they treated other policyholders with similar claims.

• Lipton v. Superior Court, 48 Cal. App. 4th 1599 (1996) In this case, the court ruled that reserves and reinsurance are subject to discovery in a trial.

• Crime/Fraud Exception to Attorney-Client Privilege — State Farm Fire & Casualty Co. v. Superior Court (Taylor), 54 Cal. App. 4th 625 (1997) (order published 12/1/97) In this case, State Farm intentionally spoiled evidence that would have supported a customer’s bad faith insurance claim. State Farm also engaged in other fraudulent practices including forgery to avoid paying valid earthquake claims.

Long Beach insurance bad faith lawyer Samer Habbas would like to remind his readers that insurance companies are for-profit enterprises and paying claims erodes profits. Insurance companies are in the litigation business. It is an important component of their business model. Some will employ many different tactics to avoid paying a claim. If you feel that you have a valid claim and your insurance is acting in bad faith, contact California insurance bad faith attorney Samer Habbas today by calling 888.848.5084 to schedule a free consultation.

Resource link: California recent developments

A big part of their responsibilities is determined by whether a client’s claim is considered a “first party” claim or a “third party” claim. When a first party claim is filed, they are required to investigate any damage to the item that they have insured, decide whether the damage is covered by their policy, and pay their client fair market value for the damage. If the insurance company does not investigate or evaluate properly or fails to acknowledge that a claim has been filed, it can be determined that they are acting in bad faith.

For third party claims, they have two responsibilities to their clients and must be fulfill both of these in good faith.

• They have a duty to defend a claim or lawsuit even if a part or most of the lawsuit is not part of the insurance policy coverage. Unless an insurance policy is specifically structured so that the costs of defense are counted against policy limits, they must cover all the defense costs no matter what the coverage limit of the policy may be.

• They have a responsibility to pay for judgments against the policyholder up to the coverage limit, but this is only when the judgment is for an omission or covered act. The legal term for this is indemnification.

If the insurance company improperly refuses to defend a lawsuit or refuses to pay a judgment or settlement of a covered lawsuit, they can be found to be acting in bad faith.

As you might guess, these are very simplified examples. If you believe that your insurance company is acting in bad faith, you should speak with an experienced Los Angeles insurance bad faith lawyer such as Samer Habbas. Southern California insurance bad faith attorneys like Mr. Habbas can explain the laws that apply to your situation and determine whether you have a case. If you believe that you have a valid claim that your insurance company is failing to honor, call 888.848.5084 today to schedule a free consultation with California insurance bad faith lawyer Samer Habbas.

Resource link: A Brief Explanation of Insurance Bad Faith

Enter “bad faith.”

When you purchase insurance coverage, you enter into a contract with the insurance company. You pay the insurance company for future protection through premiums and the insurance company pays claims submitted against your policy. A simple definition of “bad faith” in the legal world relative to the situation at hand is a breach of contract, a failure to act in good faith.

Examples of bad faith acts by insurance companies are:

• An insurance company fails to conduct a claim investigation in a timely manner.
• An insurance company fails to conduct a thorough claim investigation to prevent paying a claim.
• An insurance company unreasonably delays in payment for a claim.
• An insurance company unreasonably denies claim benefits.
• Any situation where the insurance company willfully fails to honor a legitimate claim on the coverage that they have written for a client’s policy that is in good standing.

Insurance companies market themselves as beneficial entities that exist solely to aid their insureds in their time of need because of unforeseen accidents and catastrophes. In reality, the insurance industry is a for-profit enterprise known to act in the best interests of their shareholders rather than those of us who pay ever-increasing premiums for coverage.

Of course, not every insurance transaction translates into bad faith. However, if an insurance company has denied you a legitimate claim and you feel that it is an act of bad faith, it may become necessary to hire an experienced bad faith insurance claims attorney such as Samer Habbas. He will review the circumstances of your potential claim and explain your remedial options. The initial consultation is always free at the Law Offices of Samer Habbas, so don’t delay!