What are the guidelines of good faith in dealing with a first party claim?
British Columbia, Canada
The following excerpt is from Cunningham v Greer, 2019 BCSC 1208 (CanLII):
The following guidelines of good faith emerge from the court’s instructive analysis in Bullock [Bullock v. Trafalgar Insurance Co. of Canada, [1996] O.J. No. 2566 (C.J. Gen. Div.)]: (1) an insurer must perform a balanced and reasonable investigation and assessment of the first party claim; (2) it must be prompt in handling and assessing the loss; (3) the insurer must assess the merits of the claim in a balanced and reasonable manner; (4) it must give as much consideration to the interests of the insured as it does to its own interests and is not to do anything to injure the insured’s rights to benefits under the policy; and (5) a want of reasonable care in settling a claim suggests an absence of good faith.
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