San Pedro Bad Faith Insurance Lawyer

San Pedro Bad Faith Insurance Attorney

Policyholders should expect their insurer to handle covered claims reasonably and pay any benefits owed under the insurance policy. Insurance companies can act in bad faith by unreasonably denying benefits, delaying a valid claim, or otherwise breaching their obligations. A San Pedro bad faith insurance lawyer can review your policy and claim history to help you understand if your insurer may have breached its duties.

Bad Faith Insurance

Contact Hobbs Law Group 24/7 to schedule a free case review with a bad faith insurance lawyer. You will not pay us anything unless you win.

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About Hobbs Law Group

Hobbs Law Group advocates for those injured by insurance companies and other parties that breach their legal duties. Our lawyers investigate disputed claims, review the documentation that is available, and pinpoint conduct that may give rise to legal action. We offer free consultations, and our cases are handled on a contingency-fee basis. We strive to get you the compensation you deserve in your bad faith insurance case.

What Is Insurance Bad Faith in California?

California law requires insurers to act in good faith and deal fairly with policyholders. An insurer can violate that duty by unreasonably interfering with an insured person’s right to receive policy benefits. This is considered acting in bad faith.

California Insurance Code § 790.03 lists unfair claims settlement practices. This includes not attempting to settle a claim quickly and fairly when the insurer’s liability is reasonably clear. Refusing to investigate a claim before denying benefits is another example of prohibited unfair practices.

Under California law, a dispute about the coverage or value of a claim does not automatically lead to an insurance bad faith claim. Insurers that handle claims unreasonably can act in bad faith; however, they have a right to deny coverage in some cases.

Conduct That May Lead to Bad Faith in San Pedro

Insurance claims involve a wide variety of facts and circumstances. However, there are some actions that can point to a bad faith dealing. Some of these actions include:

• Failing to investigate before denying a claim
• Unnecessarily delaying a decision or payment
• Misrepresenting policy terms
• Making unfair settlement offers
• Failing to provide a reason for denial of coverage
• Refusing to negotiate

California also published the Fair Claims Settlement Practices Regulations. These regulations set more standards for processing claims.

Insurance complaints happen frequently in California. In 2024, the California Department of Insurance received 10,816 consumer complaints detailing 11,941 different reasons for complaints. Settlements were reached with consumers in 1,254 cases, and 739 insurer decisions were reversed.

While these numbers are not exclusively about bad faith, they do show how often California consumers challenge their insurer’s decisions and practices.

Compensation in an Insurance Bad Faith Claim

Policyholders may recover different types of compensation depending on the insurer’s conduct. If the insurer improperly withheld coverage, then the value of the policy benefits that were wrongfully denied may be recovered.

Policyholders sometimes can also recover for losses caused by the insurer’s bad faith conduct. When the insurer acted particularly egregiously, punitive damages may be available; however, these are not as common. The purpose of punitive damages is to punish the wrongdoer for their behavior and discourage future misconduct.

Because San Pedro is in Los Angeles County, civil cases may be allocated to different courthouses within the Los Angeles County Superior Court system. One courthouse, the Governor George Deukmejian Courthouse, is located at 275 Magnolia Avenue in Long Beach and can possibly hear your case if it proceeds to litigation. The correct courthouse depends on the details of your case and the court rules that apply to where you file your case.

Why Hire a Bad Faith Insurance Lawyer?

Insurance policies and claims files can be complicated. Policyholders can hire a bad faith insurance lawyer to review their policy, investigate how the insurance company handled their claim, and determine if the insurer acted reasonably and in accordance with California law.

A San Pedro bad faith insurance attorney knows how to obtain evidence about the insurer’s investigation of the claim and can identify issues with unreasonable delays or denials.

Attorneys can also handle communication with the insurance company, calculate damages caused by the insurer’s misconduct, negotiate a settlement, and file a legal claim if necessary. At Hobbs Law Group, we can inform you of the bad faith insurance laws that are applicable to your case and what legal options you have.

FAQs About San Pedro, CA Bad Faith Insurance Laws

Can Bad Faith Happen Before the Insurance Company Denies My Claim?

It is possible for bad faith to happen before the insurance company denies your claim. Unreasonably delaying the investigation or processing of a claim, for instance, can cause issues before the insurer renders its final decision on coverage. Whether a delay qualifies as bad faith depends on the specific facts, including the complexity of the claim and whether the insurer had a reasonable need for more time.

Can I File a Complaint With the California Department of Insurance Against My Insurance Company?

Yes, you can file a complaint with the California Department of Insurance against your insurance company. The department may review the complaint and speak with the insurance company regarding the issue in dispute. Filing a complaint with the Department of Insurance is still different from filing a civil claim, however. If you want to file a legal claim, you still have to abide by the relevant laws and requirements, such as the statute of limitations to file.

What Is the Difference Between First-Party Insurance Claims and Third-Party Insurance Claims?

A first-party claim arises when an insured individual seeks benefits under their own insurance policy, like insurance coverage for damage to a covered vehicle. A third-party claim typically arises when someone seeks payment from another person’s insurance policy after that person allegedly caused damage or injury.

An insurer’s responsibilities and the legal issues involved may vary based on whether the claim is first-party or third-party and who is making a claim for insurance benefits.

Can a Bad Faith Insurance Claim Go to Court in San Pedro?

Yes, a bad faith insurance claim in San Pedro can go to court. While many insurance claims are settled or worked out through negotiations, either party can choose to go to trial if they cannot agree on liability or damages. If your case goes to trial, a judge or jury would decide any disputed issues of fact or law related to how the insurance company treated your claim.

Contact Hobbs Law Group Today

If you believe your insurer acted in bad faith regarding your claim, Hobbs Law Group can advocate on your behalf. Contact us today for a free consultation.