What is insurance bad faith in California?

Insurance bad faith arises when an insurer breaches the implied covenant of good faith and fair dealing implicit in every policy. Egan v. Mutual of Omaha (1979) 24 Cal.3d 809 established that this breach sounds in both contract and tort. Cal. Ins. Code § 790.03(h) lists the specific unfair claim settlement practices that can support a bad-faith claim.

What are Brandt fees?

Under Brandt v. Superior Court (1985) 37 Cal.3d 813, a policyholder who must hire counsel to compel policy benefits because of the insurer's bad faith may recover those attorney fees as tort damages, on top of the policy benefit and other consequential damages.

Should I file a Department of Insurance complaint?

Yes, in most cases. A California Department of Insurance complaint costs nothing, creates a regulatory paper trail, and pressures the carrier into a more reasonable position. It is not a substitute for a private bad-faith claim, but it strengthens one.

Insurance Bad Faith Evidence Pack Builder (California)

Your insurance bad-faith facts

Carriers respond to documentation. The more specific you are about dates and amounts, the stronger the pack I can build.

The claim

Policy type

Claim handling problem

Date claim was filed

Date of denial / underpayment / last delay

Amount unpaid ($)

Claim number (optional)

Carrier name

Pre-litigation steps

Have you filed a CA DOI complaint?

Prior written demand sent?

Documents you have (check what applies)

Full policy with declarations page and all endorsements
All claim correspondence (emails, letters, faxes)
Written denial or underpayment / coverage letter
Adjuster notes or claim-file excerpts you have received
Evidence of the loss: photos, receipts, police / fire reports
Independent repair, replacement, or contractor estimates
Medical records (for health, disability, or injury claims)
Witness statements

The dispute

What is the carrier's stated reason for denial / underpayment / delay? (optional)

What outcome do you want?

Email (optional)

Email (so I can follow up if you want)

This tool is informational only. Output is attorney-supervised AI commentary, not legal advice. No attorney-client relationship is formed by using this tool. For California-specific advice on your actual matter, email me at owner@terms.law. CA State Bar #279869.

Insurance Bad Faith Evidence Pack (California)

Your insurance bad-faith facts