There is an implied covenant of good faith and fair dealing in every contract, requiring that neither party do anything that will injure the right of the other party to receive the benefits of the agreement. Foley v. Interactive Data Corp., 47 Cal. 3d 654, 684 (1988).

When an insurer unreasonably, or without proper cause, withholds a payment or denies a payment that is due under the policy, the insurer has not only breached the contract, but is subject to the tort of bad faith. Gruenberg v. Aetna Ins. Co., 9 Cal. 3d 566, 574-75 (1973);Waters v. United Services Auto Ass’n, 41 Cal. App. 4th 1063, 1070 (1996).

The ultimate test is whether the insurance company acted unreasonably. Opsal v.United Services Auto Assoc., 2 Cal. App. 4th 1197, 1205 (1991); Guebara v. Allstate Ins. Co., 237 F. 3d 987, 992 (9th Cir. 2001).