Bad Faith Insurance

Bad Faith Insurance covers a wide range of practices undertaken by companies in the insurance industry to prevent you from obtaining money for valid insurance claims. A bad faith insurance claim, for example, may involve complaints that the insurance company repeatedly lost paperwork, sent you for unnecessary doctor's appointments or ignored information from your doctor indicating you have a valid medical problem. A bad faith insurance company will often drag out the claims process in an attempt to avoid paying out a claim, which often puts customers in a position of having to cover expenses while waiting for a claim to be approved.

When you purchase insurance, you and the insurance company agree on the terms and conditions that specify the coverage or compensation payable to you in the event that you suffer a loss or injury. Insurance can cover your medical bills, property bills and/or vehicle bills. Unfortunately, some bad faith insurance companies use a variety of tactics to delay or avoid paying out a valid claim.

This can put you in a terrible situation. For example, if you have a medical claim that the insurance company delays paying, you may be put in the position of covering all medical costs on your own—and dealing with the financial burden and possible debt—or eliminating vital medical help that you cannot afford, putting your health in jeopardy. The consequences of bad faith insurance can be far-reaching, affect your finances, your quality of life and even your health.
  Some bad faith insurance tactics may simply seem inconvenient at first, until a pattern appears. Customers report that insurance companies will repeatedly lose or misplace important documents, requiring them to fill out the same paperwork over and over. They may simply deny a claim at first, hoping that the customer will not appeal the denial. Or they may put a limitation on the time allowed for a claim, and then delay awarding the claim until that time has passed.

Among bad faith insurance tactics:

• Failing to pay a claim in a timely manner;
• Offering an amount below what the claimant is entitled to;
• Failing to defend a policyholder against a third-party claim;
• Using a policyholder's previous claims as grounds to deny a new claim;
• Failing to conduct a reasonable and full investigation of the claim;
• Misrepresenting important facts or insurance policy provisions as they relate to coverage;
• Misuse of claimants' medical records;
• Requiring excessive paperwork;
• Canceling a policy after a claim is made;
• Purposely targeting high-cost claims for denials; and
• Ignoring expert opinion in cases where that opinion would result in a claim being paid out (such as finding that a death was suicide when a medical examiner has ruled it accidental);

Bad faith insurance means that an insurance company has illegally denied or delayed paying a valid claim. Doing so can have consequences for you and your loved one. Insurers have a duty to act in good faith toward their policyholders; failure to do so can be considered bad faith insurance. If this happens, you may be eligible to file a lawsuit against your insurance company. In cases where the insurance company's conduct is beyond unreasonable, punitive damages may be awarded.

Bad Faith Insurance Legal Help

If you have been denied a legitimate insurance claim, please click the link below to send your story to a lawyer who will evaluate your claim at no cost or obligation.
Last updated on Feb-17-21