California Insurance Bad Faith Attorneys
Fighting for policyholders against insurance company misconduct
Call Now: (866) 222-2020Overview
When you purchase an insurance policy, you enter into a contract with your insurance company that requires them to act in good faith and deal fairly with you. Unfortunately, some insurance companies prioritize profits over policyholders, engaging in bad faith practices that can leave you without the coverage you paid for when you need it most.
At Keosian Law LLP, our insurance bad faith attorneys are dedicated to holding insurance companies accountable when they fail to honor their contractual obligations. We understand the complex laws governing insurance practices in California and have a proven track record of successfully challenging bad faith conduct.
Whether your claim has been wrongfully denied, unreasonably delayed, or significantly underpaid, our experienced legal team will fight aggressively to ensure you receive the full benefits you are entitled to under your policy, plus additional damages where the insurer's conduct warrants.
Insurance Bad Faith Practice Areas
Denial of Coverage
When insurance companies wrongfully deny valid claims without proper justification or investigation.
Learn MoreUnderpaid / Delayed Claims
Pursuing compensation when insurers deliberately delay or underpay legitimate claims.
Learn MoreUnreasonable Claim Handling
Holding insurers accountable for improper investigation and handling of claims.
Learn MoreFirst-Party Insurance Claims
Direct claims against your own insurance company for failing to honor policy terms.
Learn MoreThird-Party Bad Faith
When insurers act in bad faith toward third-party claimants in liability matters.
Learn MorePolicyholder Rights
Protecting the rights of policyholders against insurance company overreach.
Learn MorePunitive Damages
Pursuing punitive damages against insurers for egregious misconduct.
Learn MoreUnfair Business Practices
Challenging systematic unfair practices by insurance companies.
Learn MoreCalifornia Insurance Bad Faith Law
California provides some of the strongest policyholder protections in the nation, making it a favorable jurisdiction for bad faith claims. Understanding the legal framework empowers policyholders to recognize and challenge insurer misconduct.
- Implied Covenant of Good Faith: Every insurance contract in California carries an implied promise that both parties will deal fairly and honestly. When an insurer breaches this covenant by unreasonably denying, delaying, or underpaying a claim, the policyholder can recover damages far beyond the policy benefits—including emotional distress and punitive damages under Civil Code Section 3294.
- Fair Claims Settlement Practices Regulations: California Code of Regulations Title 10, Section 2695.1 et seq. establishes specific timelines and conduct standards for insurers. Claims must be acknowledged within 15 days, and decisions must be communicated within 40 days of receiving proof of loss. Violations create powerful evidence in bad faith lawsuits.
- Unfair Insurance Practices Act: Insurance Code Section 790.03 prohibits a comprehensive list of unfair and deceptive practices, from misrepresenting policy terms to refusing to pay claims without conducting a reasonable investigation. While this statute does not create a direct private right of action, violations serve as evidence of bad faith in civil litigation.
- Brandt Fees: Under the California Supreme Court's ruling in Brandt v. Superior Court, policyholders who prove their insurer acted in bad faith may recover their attorney fees as economic damages. This is a significant exception to the general American rule that each party bears their own legal costs.
- Punitive Damages: When insurer conduct rises to the level of oppression, fraud, or malice, California courts can award punitive damages to punish the insurer and deter similar conduct. These awards can be substantial—sometimes multiples of the compensatory damages.
Frequently Asked Questions
Find answers to common questions about our legal services and processes.
Insurance bad faith occurs when an insurance company fails to fulfill its contractual obligations to policyholders in good faith. This includes wrongful claim denials, unreasonable delays, inadequate investigations, lowball settlement offers, and failure to defend policyholders in covered lawsuits. Beyond the policy benefits owed, you may recover consequential damages (additional losses caused by the bad faith), emotional distress damages, attorney fees in some cases, and punitive damages if the insurer's conduct was particularly egregious or malicious. Evidence includes the claim file showing how decisions were made, communications with your insurer, the timeline of claim handling, expert testimony about industry standards, and documentation that the insurer's position was unreasonable. An attorney can obtain this evidence through discovery. First-party bad faith involves claims against your own insurer (e.g., homeowners, health insurance). Third-party bad faith involves liability insurance where your insurer fails to properly defend you or settle claims against you within policy limits. In California, the statute of limitations for insurance bad faith claims is generally two years for breach of the implied covenant of good faith and fair dealing, and four years for breach of the written insurance contract. Consult an attorney promptly to protect your rights. Before accepting any settlement, consult with an attorney who can evaluate whether the offer fairly compensates you. Insurance companies often make lowball offers hoping policyholders will accept less than they deserve. Once accepted, you typically cannot pursue additional damages.Why Choose Us for Insurance Bad Faith Claims
- Deep Understanding of Insurance Law: Our attorneys have extensive experience in California insurance regulations and bad faith litigation.
- Aggressive Representation: We don't back down from large insurance companies and their teams of lawyers.
- Proven Results: We have secured significant settlements and verdicts for policyholders throughout California.
- No Fees or Costs Unless We Recover: No attorney fees or costs unless we recover for you.
- Personalized Attention: Every client receives individualized attention and strategy tailored to their specific situation.
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Call Now: (866) 222-2020Schedule Consultation Client Story"After our basement flooded, our insurance company offered only a fraction of what was needed. Keosian Law stepped in and negotiated a settlement that covered everything."
Michael J.
Sherman Oaks, CA
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