Short answer: Some states have laws that let policyholders recover extra money when an insurer unreasonably delays or denies a claim. Colorado allows two times the covered benefit plus attorney fees. Washington allows up to three times actual damages. Minnesota allows capped extra costs and attorney fees when there was no reasonable basis for the denial. Pennsylvania lets courts award interest, punitive damages and attorney fees, Missouri adds a percentage penalty for vexatious refusal to pay, and Florida requires a 60-day notice before suit.
These laws have conditions and procedural steps. This table is general information, not legal advice; talk to an attorney about a specific dispute.
The table
| State | When it applies | What can be recovered | Source |
|---|---|---|---|
| Colorado | A first-party claimant whose claim for benefits was unreasonably delayed or denied can sue | Reasonable attorney fees, court costs and two times the covered benefit | C.R.S. §10-3-1116(1) |
| Florida | Anyone damaged by an insurer's listed unfair claim practices, including not attempting in good faith to settle claims when it could and should have, can bring a civil action | Condition: 60 days' written notice to the Department of Financial Services and the insurer on the state form; no action lies if the insurer pays or corrects within those 60 days. Mere negligence alone isn't bad faith, and a liability bad faith action doesn't lie if the insurer tenders the lesser of the limits or the demand within 90 days of a supported claim | Fla. Stat. §624.155 |
| Idaho | An insurer fails to pay the amount justly due within 30 days after proof of loss (60 days for uninsured or underinsured motorist claims) | Reasonable attorney's fees in the lawsuit or arbitration, on top of the amount owed | Idaho Code §41-1839 |
| Kentucky | An insurer doesn't make a good-faith attempt to settle a claim within 30 days after notice and proof of claim | 12% a year interest on the final settlement after the 30 days, plus reasonable attorney's fees if the delay had no reasonable foundation | KRS 304.12-235 |
| Minnesota | The insured must show no reasonable basis for denying benefits, and that the insurer knew it or acted in reckless disregard | Court may award half of the amount awarded above the insurer's last offer made at least 10 days before trial, or $250,000, whichever is less, plus attorney fees up to $100,000 | Minn. Stat. §604.18 |
| Missouri | When an insurer refuses to pay a loss without reasonable cause or excuse (vexatious refusal); doesn't apply to automobile liability insurance | On top of the loss and interest: up to 20% of the first $1,500 of the loss and 10% of the loss above $1,500, plus a reasonable attorney fee | RSMo §375.420 |
| Montana | An insured or third-party claimant can sue for actual damages caused by specified unfair claim practices; an insured can't bring a separate common-law bad faith claim over claim handling | Damages proximately caused, and exemplary damages under state law; no liability if the insurer had a reasonable basis to contest. Deadline: 2 years from the violation for insureds, 1 year from settlement or judgment for third parties | Mont. Code Ann. §33-18-242 |
| Pennsylvania | In an action under an insurance policy, if the court finds the insurer acted in bad faith toward the insured | The court may award interest from the date of the claim at prime plus 3%, punitive damages, and court costs and attorney fees | 42 Pa.C.S. §8371 |
| Texas | An insurer liable for a claim that misses the Prompt Payment of Claims deadlines (for example, delays payment more than 60 days after receiving required items, unless another statute sets a period) | The claim plus 18% a year interest as damages and reasonable attorney's fees; for weather-related property suits under Chapter 542A, a lower interest rate tied to the judgment date applies | Tex. Ins. Code §§542.058, 542.060 |
| Washington | A first-party claimant unreasonably denied coverage or payment of benefits can sue (Insurance Fair Conduct Act) | Actual damages plus attorney fees and litigation costs; the court may raise damages up to three times actual damages | RCW 48.30.015 |
We list only states where we read the official text ourselves in October 2026. A state that is missing is not covered here; check that state's statute or insurance department.
If you think a claim was handled unfairly
- Ask for the denial in writing and the policy language it relies on.
- Keep a timeline of every call, letter and document.
- Know your deadlines. See claim and lawsuit deadlines.
- Consider an attorney for disputed denials.
See the state insurance rules hub.
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Methodology
Each row was read from the official source linked in the Source column in October 2026. This is general information, not legal advice. See also the state insurance rules hub.
Frequently asked questions
What is first-party bad faith?
It's when your own insurer unreasonably delays or denies benefits owed under your policy.
What can I recover in Colorado?
Reasonable attorney fees, court costs and two times the covered benefit if your claim was unreasonably delayed or denied (C.R.S. §10-3-1116).
What is Washington's Insurance Fair Conduct Act?
RCW 48.30.015 lets first-party claimants who were unreasonably denied sue for actual damages and attorney fees, and courts may increase damages up to three times.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.