Legal definition of bad faith
Car Accidents Legal Terminology

bad faith

is a legal concept in which a malicious motive on the part of a party in a lawsuit undermines their case.

Bad faith examples: a person acts in bad faith if he received the money (check) that was intended for another person; after a lawsuit for a debt was filed, a husband transfers title to the home to his wife trying to defraud the creditors.

Insurance: bad faith law defines acts of “bad faith” on behalf of insurance companies as delaying, withholding, or denying policyholder benefits that are based on legitimate claims filed under valid insurance policies.

Under bad faith law, insurance companies are required to adjust a claim (deny it or pay it) within a reasonable period of time.
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