Orange County Insurance Bad Faith Lawyers
The experienced Orange County insurance and bad faith lawyers at Bentley & More LLP know how devastating it can be when an insurance company fails to honor its promises. You may have spent years paying your premiums faithfully, trusting that your insurer would support you when you needed help the most.
After a major loss, you may face unexpected delays, repeated denials, and constant excuses from the very company you trusted. This treatment is not only upsetting but, in many situations, may also violate the law.
In California, every insurance policy carries an implied promise of good faith and fair dealing. When an insurance company unreasonably delays payment or refuses to pay a valid claim, it is acting in bad faith and violating that duty.
Our team of Orange County insurance and bad faith lawyers is dedicated to standing up to these companies and holding them accountable for breaking their commitments. If you believe your insurance company has treated you unfairly and you’d like to learn more about your rights and legal options, we’re here to help.
Call us today at (949) 870‑3800 for a free consultation.
How Our Orange County Insurance and Bad Faith Lawyers Advocate for You
Challenging a large insurance company can feel intimidating. These corporations employ large legal teams and experienced adjusters whose primary focus is protecting their profits. At Bentley & More LLP, our Orange County insurance and bad faith lawyers work to even the playing field.
We are trial lawyers who stand up for policyholders and never represent insurance companies. With our deep knowledge of insurance law and extensive resources, we hold insurers accountable and work to make sure they meet their obligations under the policy.
Our work begins with a thorough review of your policy, your claim, and every interaction you’ve had with your insurance company. We examine adjuster notes, internal reports, and the stated reasons for any denial or delay in benefits.
We carefully document each instance where the company did not meet its legal obligations. Whether your claim is in Irvine, Anaheim, Santa Ana, or another part of Orange County, we draw on extensive knowledge of local courts and procedures in every case we handle.
We prepare every case as if it will go to trial, giving us strong leverage in negotiations. Insurers know our track record of winning in court and understand that delay tactics or unfair settlement offers will not succeed.
This trial‑ready approach gives our clients powerful leverage and often leads to full and fair payment without the need for a jury. When you work with us, you have a team with the resources and determination to see your case through to the best possible outcome.
Understanding the Covenant of Good Faith and Fair Dealing in California
California law recognizes that policyholders rely on their insurance companies in a relationship where the balance of power is not equal. To protect consumers, courts have long held that every policy includes an implied covenant of good faith and fair dealing. This means insurers have a legal duty to act honestly and fairly toward policyholders and must not take actions that unfairly reduce or deny the benefits of coverage.
California Civil Jury Instructions (CACI) No. 2331 explains that an insurance company must give equal consideration to the policyholder’s interests and its own financial interests. If an insurer unreasonably delays or denies benefits without proper cause, it has violated this covenant and acted in bad faith.
At Bentley & More LLP, our Orange County insurance and bad faith lawyers use this powerful legal protection to fight for our clients and hold insurers accountable.
California Insurance Laws and Regulations That Protect Policyholders
California law provides strong protections for policyholders beyond the common-law implied covenant of good faith and fair dealing. Several statutes and regulations govern how insurers must treat claimants and form the basis for many bad faith claims.
California Insurance Code § 790.03 – Unfair Claims Settlement Practices Act
This statute outlines specific unfair claims practices, such as misrepresenting policy provisions, failing to promptly investigate claims, and not attempting in good faith to effectuate fair settlements when liability is reasonably clear. While § 790.03 itself does not create a private right of action, courts often use its standards to measure whether an insurer acted unreasonably.
California Civil Code Provisions
Below are key California Civil Code provisions relevant to insurer bad faith and related tort principles:
- Civil Code § 3294 – Punitive Damages: This provision authorizes punitive damages when an insurer’s conduct is proven to be fraudulent, oppressive, or malicious. In a bad faith context, if the insurer’s behavior goes beyond mere negligence and demonstrates a conscious disregard of the policyholder’s rights, a jury may impose punitive damages to deter similar conduct in the future.
- Civil Code § 1708 and related tort principles: These establish a duty not to cause harm through wrongful acts, which dovetails with the tort of bad faith.
Together, these provisions create a strong legal framework in California for holding insurers accountable when they act in bad faith.
Consumer Protection Beyond Common Law
These statutes and regulations provide important protections for individual policyholders when dealing with large insurance companies. They give your legal team concrete standards to point to when demonstrating that an insurer’s conduct was unreasonable or unlawful.
Common Examples of Insurance Bad Faith in Orange County
Insurance companies can engage in bad faith in many different ways, and it is not always as simple as denying a claim outright. More often, bad faith involves a pattern of behavior meant to frustrate a policyholder and pressure them into accepting far less than they are owed or abandoning their claim altogether.
- Unreasonable Denial of a Claim: One of the clearest examples of bad faith is when an insurer rejects a claim that, based on the facts and the policy language, should have been approved.
- Failure to Conduct a Proper Investigation: An insurance company is expected to carry out a prompt, fair, and thorough investigation. Bad faith occurs when the company focuses only on information that supports a denial while ignoring evidence that supports payment.
- Unreasonable Delays in Payment: California law requires insurers to process valid claims in a timely way. When a company intentionally drags out the payment process in hopes the policyholder will give up, that conduct may qualify as bad faith.
- Misrepresenting Policy Terms or the Law: Some insurers try to avoid payment by misinterpreting their own policy language or misrepresenting relevant legal requirements. This behavior violates the duty of good faith.
- Offering Unreasonably Low Settlements: Another tactic involves offering an amount far below the fair value of the claim, often when the policyholder is in a difficult financial position. This approach can also amount to bad faith.
Recognizing these tactics is an important step toward protecting your rights. Skilled Orange County insurance and bad faith lawyers can identify these patterns and build a strong case to hold an insurer accountable.
Types of Insurance Policies Involved in Bad Faith Claims
Bad faith can arise with almost any type of policy where the insurer has a duty to pay benefits directly to the policyholder. The experienced Orange County insurance and bad faith lawyers at Bentley & More LLP have handled a wide range of these disputes.
First‑Party vs. Third‑Party Insurance Claims in California
It is helpful to understand the difference between first-party and third-party insurance relationships.
First-party claims are those you file directly with your own insurance company to recover benefits owed under your policy. Common examples include claims under homeowners insurance, disability insurance, or health insurance. Most bad faith litigation stems from disputes over first-party claims.
Third-party claims, by contrast, are made against someone else’s liability insurance, such as when you seek compensation after a car accident caused by another driver. While insurers handling third-party claims must still act in good faith and deal fairly, the primary bad faith standards and remedies typically apply in the context of first-party claims.
Insurance Policies Often Involved in Bad Faith Litigation
Bad faith is not limited to a single type of coverage; it can arise in virtually any area of insurance where an insurer fails to honor its obligations. Bad faith conduct can occur with many types of policies:
- Auto Insurance: Disputes often involve an insurer refusing to pay the full value of a totaled vehicle or denying a valid claim under Uninsured or Underinsured Motorist coverage.
- Homeowners Insurance: Problems frequently arise after events like fire, water damage, or theft, when the insurer undervalues the loss, delays payment, or wrongly denies coverage.
- Disability and Health Insurance: These cases often involve wrongful denials of long-term disability benefits or refusals to authorize necessary medical care.
- Life Insurance: Some insurers rescind a policy after the insured has passed away or create unfounded reasons to deny payment to beneficiaries.
Bad faith can occur with many types of insurance policies, and policyholders should seek legal guidance if they experience unfair or improper claim handling.
How to Prove an Insurance Company Acted in Bad Faith
Filing a bad faith lawsuit is a complex process that requires clear and carefully organized evidence. Your legal team must show that the company acted unreasonably or without proper cause, and building that case takes careful preparation and documentation.
Your Insurance Policy
Your policy is the contract that defines your relationship with the insurer. Its specific terms, declarations, and endorsements are some of the most important pieces of evidence in a bad faith case.
All Correspondence
Keep a thorough record of every interaction with the insurance company. Save all emails and letters, and write down detailed notes for every phone call, including the date, time, and the name of the person you spoke with.
Your Original Claim File
Hold on to copies of everything you submitted with your original claim. This can include medical bills, repair estimates, police reports, and any other documents that support your position.
The Insurer’s Denial Letter
The formal letter explaining why your claim was denied or why you received a low offer is also key evidence, as it shows the company’s official reasoning in writing.
Experienced Orange County insurance and bad faith lawyers use the discovery process to obtain the insurer’s internal claim file, which can reveal how your claim was actually handled and whether the company followed its own guidelines and California law. By gathering and presenting this information, your attorney can build a strong case to hold the insurance company accountable.
Steps to Take if You Suspect Insurance Bad Faith in California
If you believe your insurance company is acting in bad faith, taking immediate and careful steps can protect your rights and strengthen your case. Consider the following checklist:
1. Document All Communications
Keep a detailed record of every phone call, email, letter, and message with your insurer. Include dates, times, the names of representatives, and summaries of what was said.
2. Request Written Explanations
Ask your insurer to provide written reasons for any claim denial, delay, or partial payment. Written explanations can serve as critical evidence of unreasonable conduct.
3. Preserve All Evidence and Records
Retain copies of your original insurance policy, your claim file, medical records, repair estimates, receipts, photos of damages, and any other documents submitted to the insurer.
4. Seek Legal Advice Promptly
Time limits for filing bad faith lawsuits in California can be strict and, in some cases, further complicated by language within the policy itself. Contact an experienced bad faith attorney as soon as you suspect misconduct to avoid missing crucial deadlines and to ensure all evidence is properly preserved.
Damages Available in an Orange County Bad Faith Insurance Case
The compensation available in a successful bad faith lawsuit is designed to cover the full range of losses caused by the insurer’s wrongful conduct. The damages go far beyond what was owed on the original claim.
Policy Benefits
The first component of damages is the amount the insurance company should have paid on your claim in the first place.
Consequential Damages
This is compensation for any additional financial losses you suffered as a direct result of the bad faith conduct. This could include lost income, damage to your credit score, or even the loss of a business or property.
Emotional Distress Damages
California law recognizes that being wrongfully denied insurance benefits at a time of great need causes immense emotional hardship. You may obtain compensation for the anxiety, stress, and mental anguish caused by the insurer’s actions.
Punitive Damages
Punitive damages can be one of the most impactful parts of a bad faith case. If an insurer’s conduct is found to be malicious, oppressive, or fraudulent, a jury may award punitive damages.
These damages, governed by California Civil Code § 3294, are designed to punish the insurance company for its misconduct and to deter it and other insurers from engaging in similar behavior in the future.
California Deadlines for Filing Bad Faith Insurance Lawsuits
California law sets strict deadlines, known as statutes of limitations, for filing lawsuits. In insurance bad faith cases, these deadlines can be complicated. A claim for breach of a written insurance contract generally must be filed within four years.
However, a separate claim for the tort of bad faith, which allows you to seek compensation for emotional distress and punitive damages, usually has a shorter two-year deadline under California Code of Civil Procedure § 335.1.
Your insurance policy may also include provisions that shorten these time limits, adding another layer of complexity. It is important to speak with an attorney as soon as you suspect your insurer has acted in bad faith.
Holding Your Insurance Company Accountable for Bad Faith
Greg Bentley & Keith More, Insurance And Bad Faith Lawyer
You have done your part by paying your premiums and following the terms of your policy. When your insurance company refuses to honor its obligations, you have the right to take action.
A bad faith lawsuit is not just paperwork; it is a way to hold a powerful company accountable when it places its own interests ahead of its obligations. It is about pursuing justice and making sure these companies are not allowed to break their promises without consequence.
Let our experience guide you through this process. To speak with a knowledgeable personal injury attorney who knows how to handle these complex cases, contact Bentley & More LLP.
For a free and confidential consultation with our Orange County insurance and bad faith lawyers, call us at (949) 870‑3800 today.
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Bentley & More LLP – Orange County Office
Phone: (949) 870-3800