In Negotiating and Settling Insurance Bad Faith Cases , insurance expert witness Guy O. Kornblum of GK Consultants, LLC, writes:
While not an exhaustive list, the following are indicia of bad faith conduct under various standards:
• Failure to investigate a claim thoroughly;• Failure to evaluate a claim objectively;
• Unduly restrictive interpretation of policy language or claims forms;
• Unjustified delay in payment of a claim;
• Dilatory handling of claims;
• Deceptive practices to avoid payment of a claim;
• Abusive or coercive practices to compel compromise of a claim;
• Unreasonable conduct during litigation;
• Arbitrary and unreasonable demands for proof of loss;
• Absence of a reasonable basis for delay in payment or for the denial of a claim;
• Improper refusal to defend an insured;
• Improper handling of defense of insured, resulting in loss of goodwill; and
• Deliberate misinterpretation of records or the policy to defeat coverage.