Full question:
What is the legal term an insurance company can decide whether or not to honor a claim? I have had this going on for 2 months now on a stolen vehicle. I am under the impression that it may be 90 days.
- Category: Insurance
- Date:
- State: New Mexico
Answer:
Insurers can be accused of bad faith if they do not promptly and thoroughly investigate a claim, unreasonably delay payment, deny benefits, misinterpret policy language, or refuse to settle or reimburse for the full loss. If the policy does not specify a time frame for settling a claim, then a "reasonable time" applies, which varies based on the specific facts and circumstances of each case.This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.