An insurance company has a duty to 1) investigate the pertinent matters thoroughly, impartially, and promptly; 2) to communicate honestly and promptly with the policyholder as the claim is processed; 3) to make timely decisions about the claim; and 4) to explain clearly and forthrightly the bases on which the carrier premised its decision.

Unreasonable conduct can take many different forms. The most common examples are a denial of coverage, withholding of benefits, delay in payment of benefits, improper investigation, misrepresenting coverage, refusal to settle claims against the insured, and refusal to provide a defense to the insured. But the list is not exhaustive.