Define "good faith" in the context of insurance claims.

In the context of insurance claims, "good faith" refers to the requirement for all parties involved, especially the insurer, to deal honestly and fairly. This principle mandates that insurers must act in a manner that upholds the trust of policyholders and avoids any deceitful or unfair practices. It means that the insurer is expected to review claims thoroughly, make reasonable settlement offers, and not engage in tactics that could undermine the policyholder's rights.

Ensuring good faith protects the interests of the insured, promotes transparency in the claims process, and enhances the overall integrity of the insurance industry. By adhering to this principle, insurers can foster positive relationships with their clients and maintain their reputations. Good faith is crucial in dispute resolution, as it lays the groundwork for fair negotiations and equitable outcomes in claims handling.