Abuses of the Tort of Bad Faith
We live in a litigious society. In California, and those states that have accepted the tort of bad faith, lawsuits have been filed against insurers for bad faith as a negotiating tool, even before the insurer has had the time to investigate and decide whether to accept or reject a claim. Bad faith lawsuits have also been filed on first party property cases even before notice is given of the claim. Attorneys have been known to use “set up letters” which are designed to lure adjusters and claims supervisors into committing acts that can later be claimed to be acts of bad faith.
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