What is the Insurance Unfair Practices Act?

Subsection 790.03(h) of the California Insurance Code is called the Insurance Unfair Practices Act. This act defines a number of actions that are considered unfair practices. If an insurer violates these minimum standards of care, a determination could be made regarding bad faith. While not comprehensive, this list exemplifies several of the actions specified in the act.

  • Misrepresenting to claimants pertinent facts or insurance policy provisions relating to any overages at issue.
  • Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies.
  • Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies.
  • Failing to affirm or deny coverage of claims within a reasonable time after proof of loss requirements have been completed and submitted by the insured.
  • Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.
  • Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured, his or representative, agent or broker.
  • Failing to settle claims promptly, where liability has become apparent, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
  • Directly advising a claimant not to obtain the services of an attorney.
  • Misleading a claimant as to the applicable statute of limitations.

California Unfair Insurance Practices Act Lawyer

If your claim was unreasonably denied or denied without proper consideration, it might be possible to recover monetary compensation through a bad faith lawsuit. The California Insurance Code specifies a number of actions that might violate the implied covenant of good faith and fair dealing. Do not give up — schedule a free consultation with one of our lawyers and discuss your case.

All cases are taken on a contingency basis, which means you pay nothing and we receive nothing unless you win your case by way of settlement or verdict.

Call our Los Angeles-area office toll free at 877-664-5407 or e-mail us to schedule a free consultation to discuss your case. No matter where you are located in California, our lawyers can help you fight back against unfair insurance practices.