Can I make a claim for Bad-Faith Insurance practices if I am a third party making a claim on an insureds policy for bodily injury, property damage where the insured denied liability for nearly 2 years and then changed his position and allowed an investigation to be taken under his homeowners policy, where State Farm then declared the their insured did not have minimal coverage for premises liability, bodily injury and property damage after finding him guilty of wreckless and negligent behavior. Is it possible to bring a lawsuit against State Farm Insurance and their insured for the failure to provide a prompt, fair and reasonable investigation since the initial filing date of loss that took nearly 2 years to claim their insured did not have coverage, the poor and substantially delayed evaluation of damages and equitable settlements of claims including deceptive practices or non-disclosure of policy limits or coverages availiable where liability of their insured is reasonably clear and it was evident that the agency committed in bad faith. My claim was opened in Nov. 2015 and State Farm disclosed their insured did not have coverage until Oct. 2017.
Not in CA. We have not had third-party bad faith for many years.
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No -- You cannot sue State Farm for bad faith. However, you can file a complaint with the California Department of Insurance. I would not take State Farm's word for it that there is no coverage. I would sue the driver and see what happens. The statute of limitations has probably run as to bodily injury, but there are ways around that issue and it must be raised as an affirmative defense.
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