Insurance Bad Faith

Bad faith on the part of an insurance company is the company's unreasonable or unjustified refusal to pay proceeds under an insurance policy. In South Carolina, the party bringing the bad faith action must be the individual or entity who actually has the insurance policy with the company, namely the first party insured. South Carolina has not yet recognized third-party bad faith claims, or claims brought by a person not in privity with the insurance company who claims that they should have been paid under a claim.