When you are involved in a personal injury case, the insurance company has an obligation to settle your case in a prompt and fair manner. If they fail to do so, it can be referred to as acting in “bad faith,” and could have legal implications for punitive damages.
Suing Insurance Companies for Bad Faith
U.S. laws state that an insurance company has an obligation to deal fairly with individuals they insure, and the people they must pay claims to under insurance policies.
This obligation automatically exists in every insurance contract, and in cases where you believe the insurance company has not fulfilled this obligation, you have the right to sue them. In many states you also have the right to recover punitive damages in addition to attorney’s fees and other damages.