Practice question

What is 'bad faith' by an insurance company in a motorcycle accident claim?

Paying a claim too quickly
Unreasonably denying or delaying a valid claim in violation of the insurer's duty to act fairly
Offering the policy limit without negotiation
Assigning a new adjuster to a claim

Answer: B — Unreasonably denying or delaying a valid claim in violation of the insurer's duty to act fairly

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