around you can nail them pretty good with a bad faith claim. In fact, you often just have to mention bad faith and they do whatever you need them to do. This is because they know they will get hit and they know that they will have to pay. With companies like this, I am not 100% they fall within the definition of insurance in most states. So you may not have that recourse. Sure, you could sue them for fraud, breach of contract, and other claims, but those don't have the same kind of near automatic penalties. Plus, if you did win against them, and others did too, it is much more likely that they would declare bankruptcy and you would be out of luck. That isn't really a concern with large insurers. I see a lot of risk here.