Insurance companies are required by law to deal fairly and in good faith with the people they insure.
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. Bad faith can take many forms and can occur at any stage of the claim review and payment process. Examples include: failing to investigate a claim, delaying payment on a claim, and denying that a legitimate claim is covered. Insured’s can sue an insurance company that acts in bad faith.
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’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?
You may first want to appeal the denial of your claim, but if this is unsuccessful, you may need the help of a qualified attorney. Carr & Carr handles insurance bad faith cases. So if you think that you may have a case, please contact us today.
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 payment on a covered claim
- Misrepresenting the meaning of a contract’s language
If you believe you have a bad faith insurance claim, please contact our attorneys today. We can help.
