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Automobile Insurer's Duty to Exercise Good Faith
Among its other duties, an automobile insurance company is required to act in good faith when dealing with an insurance claim. This duty to exercise good faith continues throughout the entire claim process. There is an implied covenant of good faith and fair dealing in every insurance contract.
Auto Insurance Notice Requirements
Because the business of motor vehicle insurance is a complicated one that may necessitate the transmittal of a great deal of information between the parties to an auto insurance policy, issues related to the duties of an insurer and an insured to give notice to one another of matters affecting the status of a policy or the occurrence of events having significance to policy coverage frequently arise. These issues can include such things as modifications to the policy itself, the status of the insured with respect to his or her premium payment obligations, the occurrence of an event triggering coverage under the policy, or cancellation of the policy by the insurer.
Disclosure Obligations and Motor Vehicle Insurance Policies
Automobile insurance policies may have a clause that requires an insured to disclosure information to his or her insurance company that would allow the insurance company to determine if there is a valid defense to a claim against the insured. This disclosure obligation, which could be part of an insurance policy's cooperation and assistance provision, requires the insured to make a truthful disclosure of all information reasonably requested by the insurance company.
Insurer's Duty to Defend
Under an insurance policy, an insurance company has two principal obligations. One of those obligations is the insurance company's duty to defend the insured in the event of a claim within the policy's coverage. The insurance company's duty to defend is triggered when the insured gives the insurance company notice of the claim or lawsuit against the insured. The duty to defend an insured is controlled by statute and common law.
Collision Coverage
Under the collision coverage provision of a policy, an insurer agrees to pay an insured for damage to a covered vehicle caused by an accidental occurrence that is typically described as involving a "collision" or an "upset."
