Erroneous denial of insurance claim does not suffice to establish bad faith under state law; court's holding that bad faith hadn't been established did not preclude that oppressiveness (which is also listed in the disjunctive) was also not found.
No abuse of discretion in refusal to admit evidence of insurer's systematic practices, since they were possibly confusing.
http://media.ca8.uscourts.gov/opndir/18/07/171333P.pdf
Since 2011. An occasional commonplacing of the U.S. Circuit Courts of Appeal.
Neither an authoritative statement of the law nor legal advice. Quick work.