Bad faith

{
  "id": "MLC-T-INS-003594",
  "term": "Bad faith",
  "field": "Insurance and risk management",
  "definition": "An insurer's unreasonable or unfounded refusal to pay a valid claim or its failure to process and investigate a claim in a timely and fair manner, constituting a breach of the implied covenant of good faith and fair dealing. This tortious conduct can involve misrepresenting policy provisions, delaying payment without cause, or failing to defend a lawsuit against the policyholder. A finding of bad faith can expose an insurer to liability for damages exceeding the policy limits, including punitive damages.",
  "url": "https://mlchart.com/terminology/insurance/bad-faith/"
}