What is the legal term an insurance company can decide whether or not to honor a claim?
Full Question:
What is the legal term an insurance company can decide whether or not to honor a claim? I have had this going on for 2 months now on a stolen vehicle. I am under the impression that it may be 90 days.
04/24/2007 |
Category: Insurance |
State: New Mexico |
#3296
Answer:
Insurers may be guilty of bad faith for failing to promptly and thoroughly investigate a claim, unreasonably delaying payment, unreasonably denying benefits to a claim, using unreasonable interpretations in translating policy language, or refusing to settle the case or reimburse you for the entirety of your loss, etc. Unless a time period for settling a claim is defined in the policy, a "reasonable time" generally applies, which is a subjective term, depending on the facts and circumstances in each case.
