Is Your Auto Insurance Company Gambling on Your Financial Wellbeing?

7100001337 • May 2, 2025

When people purchase insurance, they expect their insurance companies to act in good faith and provide them with coverage in the event of an accident. However, in some cases, insurance companies act in bad faith by denying or delaying the payment of claims, causing significant financial damage to policyholders.

What is Insurance Bad Faith?

Insurance bad faith is a legal term that refers to when an insurance company fails to fulfill its contractual obligations to its policyholder. It occurs when an insurance company unreasonably denies or delays an insurance claim, refuses to investigate a claim thoroughly, or undervalues a claim. Bad faith conduct can also involve an insurance company failing to communicate with its policyholder or misrepresenting the scope of coverage under a policy.

In California, the law imposes a duty of good faith and fair dealing on insurance companies. This means that insurance companies owe their policyholders a legal obligation to act in good faith and deal fairly with them when processing a claim. Under California law, insurance companies must investigate claims, communicate with their policyholders, and pay valid claims within a reasonable time frame.

Examples of Insurance Bad Faith

There are various scenarios in which insurance bad faith can occur in personal injury cases in California. Some of the examples are:

· Unreasonable delays in processing insurance claims

· Denying insurance claims frivolously or without a valid reason

· Failing to conduct a proper investigation of the claim

· Using deceptive tactics to deter policyholders from making claims

· Undervaluing or underpaying claims

· Refusing to defend or settle a claim despite the policy terms permitting it

Legal Remedies for Insurance Bad Faith in California

The California insurance code provides policyholders with various legal remedies when they have been subjected to insurance bad faith. These include:

1. Breach of Contract Lawsuit – A policyholder can sue an insurance company for breach of contract when an insurance company fails to pay valid claims under a policy.

2. Insurance Bad Faith Claim – A policyholder can bring an insurance bad faith claim if an insurance company's conduct is found to be particularly egregious, such as the insurer's wrongful denial of a claim.

3. Punitive Damages – If an insurance company's conduct is so egregious that it shocks the conscience, a policyholder may be awarded punitive damages. These damages are designed to deter future wrongful conduct by the insurance company.

Conclusion

Insurance bad faith is a serious issue that affects policyholders in California who have been involved in personal injury cases. It is essential for policyholders to be aware of their legal rights and remedies under California law. By understanding the concept of insurance bad faith and the various legal remedies available, policyholders can hold insurance companies accountable and receive compensation for their losses.

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Is Your Auto Insurance Company Gambling on Your Financial Wellbeing?

How to Choose the Right Personal Injury Attorney for Your Case

May 15, 2025

Do you have questions for a personal injury attorney? Read this blog on how to choose the right personal injury attorney for your case.

Can a landlord in California be responsible for a tenant’s dog bite?

By 7100001337 • May 2, 2025

According to the Centers for Disease Control and Prevention, each year, there are approximately 4.5 million reported dog bite cases in the United States, and one in five of those cases result in serious injury. This issue raises questions about the responsibility of landlords in California in cases where a tenant’s dog bites someone. California Civil Code California Civil Code section 3342 provides that in any case where someone is bitten by a dog in a public place or while lawfully on private property, the owner of the dog is liable for damages. The word “owner” applies not just to the person who has legal title to the dog, but also to any person keeping, harboring, or having care or custody of the dog. Under the Code, a landlord may also be considered an owner if they had knowledge of the dog’s dangerous propensities and allowed the dog to remain on the property. In the case of Johnson v. City of South San Francisco (1968) 261 Cal.App.2d 425, the court held that a landlord must take reasonable steps to protect invitees from foreseeable dangers arising from keeping a tenant’s dog on the premises. In that case, the plaintiff was bitten by a tenant’s dog on the landlord’s property. The court found that the landlord had knowledge of the dog’s vicious propensities, as it had chased one of the landlord’s employees on a previous occasion. The court therefore held that the landlord was liable for the plaintiff’s injuries. In Kim v. W. S. Hampshire, Inc. (1991) 228 Cal.App.3d 1561, 1565, the court held that a landlord is not liable for a tenant’s dog bite if the landlord does not have knowledge of the dog’s dangerous propensities. In that case, the court found that there was no evidence that the landlord knew or should have known that the tenant’s dog was dangerous. In conclusion, if a landlord is aware of a tenant’s dog’s dangerous propensities and fails to take any action to protect others on the property, then the landlord may be held liable for damages caused by a dog bite. Landlords in California can protect themselves from liability by including a lease agreement that prohibits tenants from keeping dangerous dogs on the property. Landlords can also ask tenants about the nature and history of their pets before allowing them to move in. Proper steps taken by landlords will not only protect them from potential liability but also ensure the safety of all those who enter their property. Eduard Braun Attorney at Law 13713 Burbank Blvd. Sherman Oaks, CA 91401 818-796-4LAW (4529) Toll-Free: 877-533-4LAW Fax: 888-523-0963 www.eBraunLaw.com

Uninsured and Underinsured Motorist Coverage, How much it will Cost Me?

By 7100001337 • May 2, 2025

Uninsured and underinsured motorist coverage (UM/UIM) is a type of insurance that provides additional protection to policyholders involved in car accidents with drivers who do not have insurance or whose insurance coverage is insufficient. In California, uninsured and underinsured motorist coverage is optional, but it can be a vital investment for drivers who want to protect themselves financially against potential accidents. According to the California Department of Insurance, approximately 15% of drivers in California are uninsured, which means that they do not have any auto insurance coverage. While all California drivers are required to have liability insurance, which covers damages and injuries to other people in case of an accident, uninsured and underinsured motorist coverage protects the insured driver and their passengers if they are injured in a collision with an uninsured or underinsured driver. Uninsured and underinsured motorist coverage can pay for medical expenses, lost wages, and other damages that the insured driver or their passengers may have incurred in case of an accident. However, it is worth noting that the maximum amount that can be paid out under this coverage is usually the amount of the insured driver's own liability coverage. Cost for the Insured The cost for the insured for adding uninsured and underinsured policy in California can vary depending on several factors, including the insurance company, the driver's age, driving history, and the amount of coverage they want to purchase. According to the California Department of Insurance, the cost of uninsured and underinsured motorist coverage can range from a few dollars to several hundred dollars per year. One of the main factors that affect the cost of uninsured and underinsured motorist coverage is the amount of coverage the driver wants to purchase. In California, the minimum coverage limit for uninsured and underinsured motorist coverage is $15,000 per person or $30,000 per accident. However, drivers can choose to purchase higher limits if they want additional protection. It is always recommended that one will have at least $25,000/$50,000 policy. Another factor that can affect the cost of uninsured and underinsured motorist coverage is the driver's age and driving history. Younger drivers or drivers with a history of accidents or traffic violations may be considered higher risk by insurance companies, which can lead to higher premiums. In conclusion, uninsured and underinsured motorist coverage can provide valuable protection for California drivers who want to safeguard themselves and their passengers against potential accidents involving uninsured or underinsured drivers. The cost for the insured for adding uninsured and underinsured policy in California varies depending on several factors, including the driver's age, driving history, and the amount of coverage they want to purchase. It is essential for drivers to shop around and compare quotes from different insurance companies to find the best coverage at an affordable price. By doing so, they can have peace of mind knowing that they have the necessary protection in case of an accident. Eduard Braun, ESQ Law Office of Eduard Braun, P.C.