Today HUMS programs are based mainly on expensive, time consuming ground calibration tests. It is our goal to improve the modeling tools to reduce the time and budget needed to implement the HUMS approach. A new 3D dynamic ball bearing model was developed. The aim of this generic model is to enable the dynamical response of a bearing with a wide spectrum of defects to be simulated to facilitate the development of condition indicators for bearing health status diagnostics and prognostics. Model validation includes a comparison between model outputs and known bearing response to local defects. Experimental validation of the model to structural anomalies will be the focus of further research. A full scale rig for the validation of structural anomalies is under construction. The paper presents the description of the bearing model and the results of validation of the local faults. In addition, results for structural anomalies in the outer ring are presented. The sensitivity of the response to parameters such as load size, radial clearance and defect parameters is examined.