A Video About the Effect of the Tort of Bad Faith

Read the full article at https://www.linkedin.com/pulse/video-effect-tort-bad-faith-barry-zalma-esq-cfe and see the full video at https://rumble.com/vhemph-the-effect-of-the-tort-of-bad-faith.html and at https://youtu.be/Ygvybu6QPZw and at https://zalma.com/blog plus more than 3700 posts.

It is indisputable that in the 1950’s, 1960’s and 1970’s the insurance industry abused some insureds to avoid paying legitimate claims. Without a factual basis, insureds were accused of arson or other variations on insurance fraud. Indemnity payments were refused on the flimsiest of excuses. People were found to have diseases that only horses could catch. Disability payments were refused because an insured was wheeled in her wheelchair to church one day and, therefore, was not totally house-confined. Insureds were driven into bankruptcy when reasonable demands within policy limits were refused.

To stop this abuse, the courts of the state of California invented the tort of bad faith. It took a universal contract remedy and decided that the breach of an insurance contract without, what the court decided was proper, genuine or even fairly debatable reasons, was transferred from a contract breach into a new tort.