There are almost an infinite number of unfair practices that may constitute bad faith that involve denying, delaying or lowballing an insurance claim.  Some common examples of conduct by an insurance provider that may constitute bad faith include:

• Denying a Claim without Reasonable Basis: A denial of coverage itself is not necessarily evidence of bad faith.  However, an insurance company that denies a claim without even conducting an investigation or without a reasonable basis may be engaged in bad faith practices.
• Unjustified Delay: This can take many forms including a delay in informing a policyholder whether coverage is being acknowledged or denied or delay in paying a claim.
• Offering Substantially Less than Value of Claim: An insurance company cannot offer substantially less than the reasonable value of a claim.
• Failure to Communicate: Any insurance company has an obligation to communicate with a policyholder regarding the status of a claim, reasons for denial and other reasonable inquiries.
• Requesting Overly Burdensome Documentation: An insurance company may be found to be acting in bad faith when they make unreasonable requests for extensive supporting documentation especially where liability or the value of the claim is reasonably clear.
• Using Intimidating or Aggressive Tactics: An insurance company many not intimidate its policyholder by threatening harm or legal action to discourage a policyholder from pursuing the full value of a claim or other benefit provided under the policy.
• Altering a Policy without Notice or Consent: An insurance company may be liable for bad faith where it attempts to underwrite new exclusions into a policy without informing the policyholder or obtaining the policyholder’s consent.
• Intentionally withholding or Misrepresenting Information: Because of the fiduciary relationship between an insurance company and its policyholder, the insurance company many not withhold material facts or misrepresent information that is pertinent to its policyholder’s claim.  If the insurance company is aware of a provision that would provide a basis for coverage, it cannot withhold this information and emphasize another provision that does not provide a basis for coverage.
• Failure to Defend a Policyholder: An insurance company that provides liability coverage engages in bad faith conduct when it refuses to defend a policyholder against lawsuits without a reasonable basis for denying the duty to defend.
• Cancellation of Policy: An insurance company may not cancel a policyholder’s coverage because the policyholder made a claim when the policyholder was not at fault.