Bad faith insurance is any matter regarding an insurance claim by an insured that is wrongfully denied by the insurer. An insurance policy is considered a contract, and it requires that your insurer act in "good faith" toward you. When an insurer unreasonably withholds the benefits of the policy from its insured, it is considered to be in "bad faith."

What are some examples of bad faith?

Some examples include failing to promptly and thoroughly investigate a claim; unreasonably delaying payment; unreasonably denying benefits to a claim; using unreasonable interpretations in translating policy language; refusing to settle the case or reimburse you for the entirety of your loss, etc. Insurance bad faith constitutes not only breach of your insurance policy contract with the insurer, but also includes injuries personally sustained outside of the insurance contract as a result.

Do insurers have the right to deny a claim?

Insurers have the right to deny a claim where the insured has not lived up to the insurance contract, or where the claim is not covered by the policy or is fraudulent.

What if my insurance company denies my claim and commits bad faith?

Collect your policy and documentation and bring them to a qualified insurance attorney. Insurance bad faith is a very specialized field. After a consultation and review of the policy, an experienced insurance attorney will be able to determine whether or not coverage applies for your loss, and whether or not your insurer has committed bad faith.

What can I recover if I sue my insurer for bad faith?

If the court finds the insurer to have acted in bad faith, the insured is eligible to recover the benefits of the policy for the claim as well as all consequential losses and damages it suffered as a result of the insurer wrongfully denying the claim, including damages for emotional distress. This also includes the insured's attorneys' fees, which you had to pay in order to force your insurer to live up to its contractual obligations; and in some cases where the insurer has exhibited flagrant, intentional and/or gross misconduct, punitive damages are awarded.

What are an insured's options when an insurance carrier commits bad faith?

When an insurer commits bad faith, an insured has three options: to negotiate a resolution and an acceptable settlement with the insurer; if that fails (and it often does), the insured can either give up, or sue. Too often, many just give up. Frequently, when an insurance attorney becomes involved, an insurer will take the claim much more seriously and look to modify and correct its earlier bad faith direction in order to minimize the amount of the claim, potential bad faith implications and loss and punitive damages against the insurer.

Why do insurers commit bad faith?

There is a very substantial benefit and good economical reason for insurers to commit bad faith. Insurers receive thousands of claims every day, many of which are wrongfully denied. Very few insureds dispute this wrongful denial and thus insurers save considerable amounts of money that they would otherwise be obligated to pay.

Copyright © Bad Faith Insurance Lawyers. All Rights Reserved.
Wrongful Delay, Failure to Investigate, Unfair Insurance Practice, Denying a Claim, Web Resources, References
Website by Consultwebs.com, Inc. – Webs for Lawyers, Law Firms