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This article discusses the main differences in dealing with insurers’ bad faith under American and Chinese insurance law, and recommends Chinese Government introducing the American bad faith lawsuit to China. For this purpose, the nature, essence, and the general and specific requirements of bad faith lawsuit in America is firstly presented. Then, the article states how insurers’ bad faith in China is handled in accordance with the Chinese insurance law: remedy for breach of the contractual obligation, and public law sanction. Further, new practices of legislation, justice, administration, and self-discipline of the insurance industry for preventing and handling insurers’ bad faith in China, are also represented. Finally, through the analysis of jurisprudence and comparative law, the article analyzes the necessity of introducing American bad faith lawsuit into China, and the requirements of the legal reform for the introduction.   </p

Bad Faith Lawsuit in America and Improvement of Chinese Insurance Law