When it comes to insurance, what exactly is “bad faith” under the law, and why does it matter? Most states, Indiana included, define what is an unfair claim handling practice. It matters because none of us write our own insurance policies. Government plays an important role in regulating insurance company conduct, and in specifying what is an unfair claim settlement practice. For example, in Indiana it is unfair to misrepresent facts about coverage, to delay claim investigations, to deny claims without any investigation, to refuse to settle when liability is clear, to pay something on a claim without clearly explaining the basis for the payment. These examples represent a small portion of the type of conduct our clients have experienced before coming to us for help. Usually, the sooner we can get involved in a case the better. There are many pitfalls for the unwary when a person tries to go it alone with an insurance company.