Statutory Bad Faith
In addition to the burdens imposed by the implied covenant of good faith and fair dealing, certain statutory provisions have been enacted with respect to an insurer’s duty to investigate and evaluate claims and negotiate settlements. California Insurance Code section 790.03(h), added in 1972 to the Unfair Practices is almost identical to the model Fair Claims Practices Act proposed by the National Association of Insurance Commissioners. It lists the multiple prohibited acts.
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