Bad faith insurance can be defined as a term that is used to describe an insurance company’s unfair behaviour. Bad faith behaviour takes place in several areas but is commonly referenced when a claim denial happens. It is also referenced when an insurance company offers less payment on a claim. This payment should actually be considered payable by the company.
Bad faith insurance practices happen when insurance companies members feel they can get a lot of money when they deny payable claims. That means, some companies just act out of self-interest. The company higher authorities know that the insurance usually backs off when a claim is rejected several times. This is to gain coverage. When this happens, the executives indulge in these practises out of fear of standing up to the company.
The term ‘bad faith’ is used only for some insurance practices when the company is acting unfairly. However, whether it’s bad faith insurance or not must be determined by either a judge or jury. A judge or jury can find an insurance company guilty of bad faith by going through the details of the company’s behaviour. The panel can then decide whether or not there is evidence that the company knew it was acting unfairly.
During the claims adjusting process, the Insurance companies are obligated to provide their policyholders with care. Some of the practises to be taken care of by the company are:
- Investigating the claim in a good amount of time
- Settling claims quickly as soon as it has been determined that coverage should be given
- Clearly and promptly speaking to the policyholder and insured parties.
- Describing all the details of the policy terms thoroughly
- Accepting or denying claim coverage within that period after the claim is submitted
There are so many examples of bad faith insurance in addition to rejecting claims and not providing proper payment coverage. Some of them are situations involving inadequate case investigation, not able to give consideration based on the interest of the insured person, denying to defend a lawsuit, or denying to settle on behalf of the insured party. Even denied insurance claim and life insurance claim policies come under this.
If you suspect your insurance company is acting in such practices, it is your right to file a lawsuit. You can also hire a bad faith insurance attorney to fight on your behalf. If you have the evidence to prove bad faith practices against the company, you can get refunds for damage. Money damages in bad faith issues result in the total amount of money that was originally due to you. Even the money damages have to be according to your policy. Your bad faith insurance attorney will make sure that you get all your invested money back. You can hire a lawyer for long term disability, when you don’t get the benefits of a disability policy.
In some cases like denied insurance claim and life insurance claim, additional awards are given to the affected. This only happens if the insurance company’s bad faith caused you damage that is bigger than the policy amount. In extreme cases, the court gives the plaintiff punitive damages if the plaintiff was proven particularly malicious behaviour on the part of the insurance company.
If you are thinking of filing a bad faith claim against your insurance company, make sure to do it within a specific period frame. This time frame, however, depends upon the laws of the state in which you reside. Getting in touch with a bad faith insurance attorney firm law will help determine the viability of your case. Working with an experienced bad faith insurance firm is better. They can provide you with legal knowledge. The firm also offers you the support you need to help you stand up to a major insurance company.
It is not a simple task when it comes to filing a bad-faith lawsuit against an insurance company. You have to decide whether to file in state or federal court. In addition to that, you will need to select a forum that has jurisdiction over the insurance company. There is a major possibility that the company will include additional claims such as fraud, breach of contract, and negligence. You should ask for compensation under the policy as well as damages for the insurance company’s bad faith. You can still go ahead with your bad faith lawsuit, even if the insurance company decides to settle the claim.
Every state has specific laws protecting customers from bad faith tactics by insurance companies. Filing a bad-faith lawsuit by yourself can feel like an uphill battle. An experienced attorney or firm will help you stand up to the company. This company can be filed when it has compromised your claim with bad faith tricks and tactics. Consult with a bad faith insurance attorney to learn more about the bad faith claim process in your state.