As
Published in October 2003 King County Bar Bulletin
Insurance has
become a necessary item for all Washington residents and businesses. Despite the State requiring insurance for
many activities, insurance is a good way to manage risk. However, the relationship between the insurer
and insured has many different duties and obligations. One major duty between the insurer and the
insured is the obligation of good faith and fair dealing.
Every insurer has
a legal duty to act in good faith. This
duty is one of fair dealing and a responsibility to give equal consideration to
the insured’s interests.[1] To avoid bad faith claims an insurer must
comply with both the legislative and judicial standards.[2] In addition, the Insurance Commissioner created
regulations defining unfair claims practices.[3] Under RCW 19.86.920, there
is an implied reasonableness requirement in defining unfair methods of
competition or unfair or deceptive acts or practices.[4]
