Can an insurer be held liable for failing to compensate an insured for a loss under a policy?

An insurer is under an obligation to act fairly and in good faith in discharging its contractual responsibilities. If it fails to deal fairly and act in good faith, by refusing, without proper cause, to compensate the insured for a loss covered by the policy, such conduct may give rise to a cause of action in tort for breach of the implied covenant of good faith and fair dealing (Gruenberg v. Aetna Ins. Co., 9 Cal.3d 566, 575, 108 Cal.Rptr. 480, 510 P.2d 1032).