Asked by Turner Beard on May 17, 2024
Verified
Bradley suffers a covered loss under his homeowner's policy but the insurer stonewalled for years before finally paying.Bradley can sue the insurer for ________.
A) Bad faith breach
B) Professional misconduct
C) Failure to exercise the reservation of rights
D) Compensatory damages for contractual breach
Bad Faith Breach
A situation where a contractual obligation is not fulfilled, with the violator having no intention to honor the contract from the start.
Homeowner's Policy
An insurance policy providing coverage for a private residence, protecting against various risks like damage, theft, and liability.
Compensatory Damages
Financial compensation awarded to a plaintiff to compensate for losses or injuries as a result of the defendant's actions.
- Examine the effects of insurers' bad faith practices and their repercussions.
Verified Answer
MB
Milav BrahmbhattMay 20, 2024
Final Answer :
A
Explanation :
If an insurer's refusal to perform stems from an intent to stonewall or unreasonably delay paying a meritorious claim,the insurer's breach may be considered bad faith.
Learning Objectives
- Examine the effects of insurers' bad faith practices and their repercussions.