Does a medical insurer have a duty of good faith and fair dealing in denying an insured's claim for hospital benefits?
California, United States of America
The following excerpt is from Rangel v. Interinsurance Exchange, 14 Cal.Rptr.2d 783, 4 Cal.4th 1, 842 P.2d 82 (Cal. 1992):
In Silberg v. California Life Ins. Co., supra, 11 Cal.3d 452, 113 Cal.Rptr. 711, 521 P.2d 1103, this court held that a medical insurer that failed and refused to pay an insured's claim for hospital benefits on the assertion "that it was entitled to wait until the pending [workers'] compensation proceeding was concluded" had, as a matter of law, breached the duty of good faith and fair dealing. (Id. at p. 461, 113 Cal.Rptr. 711, 521 P.2d 1103.)
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