Insurance companies are required by law to deal fairly and in good faith with the people they insure. But what happens if they don’t?
What is insurance bad faith?
Insurance bad faith refers to the failure of an insurance company to provide coverage for a legitimate claim filed by one of its insured policy holders. Bad faith can take many forms and can occur at any stage of the claim review and payment process. Insured people can sue an insurance company that acts in bad faith.
What are some examples of insurance bad faith?
Insurance bad faith can include a number of wrongful actions by an insurance company. Some of these include:
- Refusing to investigate a claim
- Unnecessarily and excessively postponing a claim investigation or payment
- Denying that a legitimate claim is covered
- Denying payment on a covered claim
- Misrepresenting the meaning of a contract’s language.
Are insurance companies ever allowed to deny claims?
Insurance companies can legally deny a claim for several reasons: if the insured does not adhere to specific stipulations in an initial contract, if the claim is fraudulent, or if the claim is for something not covered by the insured person’s policy. Absent these reasons or another legitimate reason, the insurance company has an obligation to honor its policies.
What should I do if I have a claim to file?
If you have a claim to file, the two most important steps you can take are to file immediately and to keep careful documentation of all communication with the insurance company. In case of bad faith or other problems, accurate notes and copies of forms and letters can help you support your case. In all cases, filing immediately is important as most policies will not cover claims after a certain time period.
What should I do if I feel that I am the victim of bad faith?
If you believe you have a bad faith insurance claim, please contact a Carr & Carr lawyer today. We can help, whether your insurance company is based in Oklahoma, Arkansas or elsewhere.
Want to learn more?
Listen as attorney Tye Smith discusses personal injury, bad faith cases, laws you might not know about, paying for legal services, and more. This interview was featured on Spotlight Oklahoma on News Talk 1520 KTOK radio.
If you have had a problem with your insurance company and need to talk with someone who can help, call 1-877-392-4878 and speak to an experienced insurance bad faith lawyer with Carr & Carr Attorneys. Email now to visit with someone who can answer your insurance bad faith questions. Our offices in Oklahoma City, Tulsa and Northwest Arkansas allow us to serve clients across Arkansas and Oklahoma.