Insurance Bad Faith California. The standard for establishing bad faith under california law requires a plaintiff to demonstrate “ (1) benefits due under the policy were withheld; Essentially, an insurance policy is a contract between you and the insurance company.
And (2) the reason for withholding benefits was unreasonable or without proper cause.”. It is my experience that insurers issuing policies in california customarily follow these good faith. Life and accidental death and dismemberment (ad&d) insurance.