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Navigating Good Faith and Bad Faith Claims in Insurance #145709

Categories: TEXAS
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About Course

Course Overview

Every claim decision matters. How an insurance claim is investigated, documented, communicated, evaluated, and resolved can shape the policyholder’s experience and may expose an insurer to allegations of improper claims handling.

Navigating Good Faith and Bad Faith Claims in Insurance is a 4-hour Texas continuing education course designed to help insurance professionals understand the principles of good faith claims handling and recognize practices that may create bad faith concerns.

The course explores the claims process from investigation through resolution, with an emphasis on fair treatment, timely communication, proper documentation, coverage evaluation, and professional decision-making. Learners will examine situations that can create challenges during the life of a claim and consider practical approaches for handling those situations consistently and professionally.

Rather than focusing only on definitions, this course connects good faith and bad faith concepts to the everyday decisions insurance professionals make when investigating, evaluating, documenting, and resolving claims.

What You’ll Learn

Throughout this course, you’ll explore:

  • Principles of good faith in insurance claims
  • Good faith duties and professional claims-handling practices
  • Common situations that may create bad faith concerns
  • Effective and timely communication with policyholders and claimants
  • Proper claim investigation and fact gathering
  • The importance of accurate and complete claim documentation
  • Coverage evaluation and claim decision-making
  • Practices that can help reduce bad faith exposure
  • Professional responsibilities throughout the claims process
  • Applying good faith principles to real-world claim situations

Learning Objectives

By the end of this course, you should be able to:

  1. Explain the fundamental principles of good faith and bad faith in insurance claims.
  2. Identify claims-handling practices and situations that may create potential bad faith concerns.
  3. Describe the importance of timely, fair, and thorough claim investigations.
  4. Recognize how communication and documentation can affect the handling and outcome of a claim.
  5. Evaluate common claims situations using good faith claims-handling principles.
  6. Apply professional claims practices when investigating, evaluating, and resolving insurance claims.
  7. Identify steps insurance professionals can take to support fair, consistent, and well-documented claim decisions.

Who This Course Is For

This course is ideal for insurance adjusters, agents, claims professionals, supervisors, and other Texas insurance professionals who want to strengthen their understanding of good faith obligations and professional claims-handling practices.

Course Details

Course: Navigating Good Faith and Bad Faith Claims in Insurance
Texas Course #: 145709
CE Credit: 4 Hours
Credit Type: Class-Equivalent
Format: 100% Online & Self-Paced

Strengthen the judgment behind every claim decision. Learn how good investigation, communication, documentation, and decision-making work together to support fair and professional claims handling.

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What Will You Learn?

  • Understand the importance of good faith practices in insurance.
  • Recognize legal and ethical obligations for insurers and adjusters.
  • Identify and avoid actions that may constitute bad faith.
  • Implement strategies to prevent bad faith claims.
  • Apply insights from case studies to real-world situations.

Course Content

Module 1: Introduction to Good Faith and Bad Faith
Good Faith is what defines any insurance contract. This is because it is an agreement between insurers and policyholders to do business with honesty, fairness, and transparency during the time covered by any insurance contract. With good faith, claim payments are made effortlessly, trust is strengthened, and the whole insurance system operates according to plan. However, this is not possible if the element is not observed, which ultimately results in bad faith and negative consequences for insurers. This module will proceed to discuss what bad faith actually entails and how it occurs, as such information is vital to any person in the insurance business field.

  • Definition of Good Faith
  • Definition of Bad Faith
  • Types of Bad Faith
  • Module 1: Quiz
  • Importance of Good Faith in Insurance
  • Legal Framework Governing Good Faith and Bad Faith
  • Module 1: Quiz 2
  • Case Study: Roof Leak in a Florida House
  • Module 1 Summary: Quiz

Module 2: Legal and Ethical Obligations

Module 3: Identifying Bad Faith Actions

Module 4: Preventing Bad Faith Claims
As insurance professionals, are so important in the lives of your clients. They come to you at the most vulnerable moments of their lives, trusting that you will see them through challenges and give them the help they need. That trust is the foundation upon which we do business in this industry. It's just that when such trust gets breached denied claims, needless delays, and incompetence in conducting thorough investigations the likelihood of bad faith claims arises, which is a position nobody would want to face. Preventing bad faith claims has little to do with just legalizing your practice or staying out of trouble; it's about being that kind of professional on whom your clients can rely. It is a matter of integrity to oneself, protection of reputation, and building lasting relations with people who count on the professional. It is also about empowerment. When you know how to communicate clearly, manage claims fairly, and address issues promptly, you are not just doing your job, you are making a difference. You are showing your clients that they matter and that their trust in you is well-placed.

Module 5: Case Studies and Legal Precedents

Module 6: Course Review and Assessment

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