Insurance Bad Faith is a serious issue that can have a major impact on policyholders and those injured by wrongful conduct. Insurance companies often prioritize the financial interests of themselves rather than protecting the financial well-being of their insureds. Often times this conduct can leave insureds in financial ruin and place immeasurable stress on the lives of the insured. Having an advocate, who knows how to deal with and handle these types of issues is essential to obtain the best outcome.
Signs That Someone May Be Facing Insurance Bad Faith:
- Denial of a valid claim: One of the most obvious signs of insurance bad faith is when an insurance company denies a claim that should be covered under the policy. If you have a valid claim and your insurance company is refusing to pay out, it could be a sign of insurance bad faith.
- Refusing to pay or settle for the policy limits or reasonable value of a case: Often Insurers try and save any money on the settlement they can. However, in so doing, they often subject their policyholders to continued lawsuits and the risks of judgments far above that the limits of the policy. This puts the insured at risk of being liable for judgments for hundreds of thousands if not millions of dollars.
- Unreasonably delayed payment: If your insurance company is taking an unreasonable amount of time to process and payout on a claim, it could be a sign of insurance bad faith. Policyholders have a right to timely payment on valid claims, and delays without a good reason could be a tactic used by the insurance company to avoid paying out.
- Lack of communication: If you are having trouble getting in touch with your insurance company or getting answers to your questions, it could be a sign of insurance bad faith. Insurance companies must communicate with policyholders in a timely and responsive manner. Further, Insurers have an obligation to explain the claims against the insured as well as the risks the insured faces on a given claim. If the insurance company is not meeting this obligation, it could be a red flag.
- Unfair interpretation of policy language: Insurance policies are often complex and filled with legal jargon. Still, insurance companies have a duty to interpret them fairly and in good faith. Having an advocate who understands how these policies are written and operate ensures that every argument can be made to protect the insured from unfair practices or interpretations. If you believe that your insurance company is using an unfair or misleading interpretation of policy language to deny a claim, it could be a sign of insurance bad faith.
If you suspect that you or someone you know is facing an insurance company who may be acting in bad faith, it’s important to take action. Policyholders have legal rights and may be able to file a lawsuit against their insurance company if they have been treated unfairly. An experienced attorney can help you understand your options and guide you through the process of seeking justice.