What is the duty of an insurer not to withhold payment of an insured's insurance benefits?

An insurer has a duty not to unreasonably and in bad faith withhold payment of its insured's claim. "For the insurer to fulfill its obligation not to impair the right of the insured to receive the benefits of the agreement, it ... must give at least as much consideration to the latter's interests as it does to its own." (Egan v. Mutual of Omaha Ins. Co. (1979) 24 Cal.3d 809, 818-819, 169 Cal.Rptr. 691, 620 P.2d 141.) A lengthy delay in resolving a claim for insurance benefits has the identical consequence for the insured as an outright denial of benefits, i.e., exposure to the very risk which he purchased insurance to guard against. (McCormick v. Sentinel Life Ins. Co. (1984) 153 Cal.App.3d 1030, 1050, 200 Cal.Rptr. 732.)

The refusal of an insurer to deal fairly and in good faith with its insured by failing promptly to investigate and "by refusing, without proper [10 Cal.App.4th 488] cause, to compensate its insured for a loss covered by the policy, including a loss under an uninsured motorist's endorsement, may give rise to a cause of action in tort for breach of the implied covenant of good faith and fair dealing. [Citation.]" (Fleming v. Safeco Ins. Co. (1984) 160 Cal.App.3d 31, 38, 206 Cal.Rptr. 313.)