b'
Before an insurer is able to dispute or reject a claim presented by its insured, it is required to thoroughly investigate the claim to prove that the loss is one specifically excluded from coverage. The Supreme Court of California explained the obligation of the insurer, noting that while the task of \\u201cdistinguishing fraudulent from legitimate claims may occasionally be difficult for insurers,\\u201d an insurer cannot in good faith deny liability under the policy \\u201cwithout thoroughly investigating the foundation for its denial.\\u201d [Egan v. Mutual of Omaha, 24 Cal. 3d. 809, 157 Cal. Rptr. 482 (1979)].
\\nIn first party cases, the implied covenant of good faith and fair dealing obligates the insurer to make a thorough investigation of the insured\\u2019s claim for benefits. It is improper for a first party insurer to unreasonably delay or withhold payment of benefits. If the insurer \\u201cwithout proper cause\\u201d (i.e., unreasonably) refuses to timely pay what is due under the contract, its conduct is actionable as a tort.
\\nInsurers are obligated to find some means to pay for a loss rather than finding a means to avoid payment. An adjuster must work to justify paying every loss that can be brought within the coverage by a thorough investigation, even if that means is contrary to the insurer\\u2019s own financial interest. If the adjuster does not conduct such an investigation with that intent, the insurer opens itself to charges of breach of the covenant of good faith and fair dealing and an assessment of punitive damages. A thorough investigation seeks to avoid unnecessary litigation and prevent payment of losses for which there is no coverage.
\\nBefore the insurer can deny a claim it must first conclude that:
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