Insurance Companies Should Promptly Pay Undisputed Claims

In the numerous depositions of claims handlers our firm has conducted, adjusters frequently testify that they have been trained that the duty of good faith and fair dealing requires them to make prompt payment of the “undisputed portion” of covered insurance claims. Even if the insurer and the insured disagree on the total amount of a particular claim, the insurer is supposed to promptly pay what it believes it owes on covered claims to its insureds.