Duty Of Good Faith Required of Insurance Companies

Sacramento California Insurance Bad Faith Attorneys

Insurance companies are allowed to deny disability claims; however, they must first give your claim proper consideration and have a valid reason for denying the claim. And, they must also do so within a reasonable time frame and tell you the reason for the denial. Specifically, Subsection 790.03(h) of the California Insurance Code (called the Insurance Unfair Practices Act) defines a number of actions that are considered unfair practices by insurance companies.

There are several actions, or duties, that an insurer must follow to uphold the duty of good faith, including to:

Promptly settle claims where liability has become reasonably clear;
Refrain from making “low-ball” settlement offers;
Reserve rights only where there is a good faith belief in the existence of the rights reserved.

If your insurance company has violated the tenets of the bad faith and fair dealing agreement, you might be entitled to recover the compensation owed by your policy as well as additional damages for attorneys’ fees and emotional distress. Bad faith claims require an attorney experienced in handling insurance bad faith cases who examine your situation and provide legal advice regarding your best course of action — our law firm has both the experience and resources to help you.

Insurance Companies Have a Duty of Good Faith to Their Policyholders

When an insurance company acts more in the interest of its bottom line than in the interest of its policyholders, it is crucial to hold the company responsible for its actions. Typically, an individual has paid premiums to an insurance carrier for months, years or decades only to have a benefits claim denied without proper consideration. Our attorneys will fight to hold the insurance company accountable while ensuring you recover full and fair compensation you may be entitled to receive.

At Donahue & Horrow, L.L.P., our insurance bad faith lawyers have more than 50 combined years of experience guiding clients through a wide range of practice areas. We focus a great deal of the resources and attention of the firm to insurance denials. Our expertise in this area of the law and our level of comfort in negotiating with insurance companies put our clients at ease. You can trust us to guide you through this challenging financial situation in the most efficient and cost-effective manner possible.

Headquartered in the Los Angeles area, Donahue & Horrow, L.L.P., also represents clients in Northern California communities such as San Francisco, Oakland, San Jose, Sacramento and Hayward.

Call For Your Free Consultation Today

To learn more about how our attorneys can help you, schedule a free consultation today. We represent clients in communities throughout Northern and Southern California. Call us at 877-664-5407 or contact us online to schedule an appointment as soon as possible.