Bad Faith Insurance
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Overview
A situation of bad faith insurance can occur when an individual makes an insurance claim and the insurance company denies or delays the claim without a valid reason. An insurance policy is a contract between the insurance company and the holder of the policy. It sets out the responsibilities of the insurance company in exchange for the payment of premiums.
A claim of bad faith insurance can occur if:
- An insurance company denies a valid claim
- An insurance company unreasonably delays payment
- An insurance company does not perform a thorough investigation for a claim and then denies the claim
- An insurance company underpays a claim for an unsubstantiated reason
The common result is that the policy holder is at an unfair disadvantage as a result of filing the insurance claim. This can apply to auto insurance, health insurance, homeowner’s insurance, disability insurance and others.
Understanding Bad Faith Insurance
Insurance policies contain all the information about the insurance company’s obligations to the policy holder. The insurance policy is valid when premiums have bene paid and are current.
If you decide to file a claim with your insurance company, keep track of your paperwork and any correspondence from the company. If the claim doesn’t seem to be taken seriously, or is experiencing a delay, there could be a bad faith situation starting.
Harms can continue when claims are not handled in an appropriate manner. For example, you may be waiting for the financial settlement in order to purchase a new car and are unable to move forward, that can have further impacts.
Benefits of Pursing Bad Faith Insurance Claims
The benefit to the individual pursing a bad faith insurance claim is to be appropriately compensated for the delay in processing the claim or for the unfair denial of a claim. You are also holding the insurance company to task for not living up to their obligations in the insurance policy contract.
The benefit in holding any corporation accountable is being able to encourage them to do a better job with future customers. In some cases, bad faith insurance claims have resulted in substantial changes in the industry which benefit everyone who is insured.
How Our Attorneys Can Help
Bad faith insurance actions are different in many situations, especially as it relates to personal impact. You need experienced advice and secure direction. Our attorneys have both and have helped hundreds of customers resolve bad faith insurance actions.
Do You Have a Case?
Have you had an experience with a delay or denial of an insurance claim, you may be a victim of bad faith insurance. Contact us with an overview of your experience so we can advise you on next steps. Call 844-201-2929 or complete the short form below.
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