Q What is the Insurance Definition of "Bad Faith?"
There is no technical definition of "bad faith." Most states define it as "unreasonable or unfair conduct by an insurance company." There are several ways an insurance company can commit "bad faith." For example, if your insurance company delayed handling your claim, refused to defend a lawsuit, refused to make a fair settlement offer, or interpreting your policy unfairly, you may have an insurance "bad faith" claim.