Q What is "Bad Faith" Insurance?
"Bad faith" insurance occurs when an insurance company treats you unfairly or unreasonably. When you sign up for insurance, you are given a contract outlining the benefits you are entitled to if you are ever involved in an accident or natural disaster. If your provider withholds benefits from you, this is considered "bad faith." If your insurer breaks any legal standards set in your contract, this is considered "bad faith."