What principle is violated when an insurance company intentionally delays the claims process?

The principle that is violated when an insurance company intentionally delays the claims process is the principle of utmost good faith. This principle requires both parties in an insurance contract—the insurer and the insured—to act honestly and not mislead or withhold information from one another. By intentionally delaying claims, the insurance company undermines the trust that is essential for the effective functioning of insurance contracts. This behavior can create significant frustration and financial burden for the policyholder, who relies on timely payment for their claims. Upholding utmost good faith is crucial for maintaining a fair and transparent relationship between insurers and insured individuals.

The other principles, although important in the realm of insurance, address different aspects: the doctrine of reasonable expectations deals with the interpretation of policy terms in favor of the insured, the principle of indemnity focuses on compensating policyholders for their loss without profit, and the principle of subrogation involves the insurer's right to pursue recoveries after compensating the insured. These do not directly relate to the intentional delay in processing claims.