How do you prove an insurance company acted in bad faith?
Your attorney will attempt to show the court that the insurer failed to meet the contractual obligations without just cause. Your attorney will show that a claim was unfairly denied, or that you were unfairly dropped from the policy contrary to the provisions in the signed contract. We can show the insurer acted unreasonably by demonstrating what a reasonable insurer would do in a similar situation.
What are some examples of "bad faith" on the part of the insurer?
You may have a claim if your insurer unreasonably denies or delays a valid claim, fails to promptly and thoroughly investigate a claim, interprets contractual wording in an unreasonably narrow fashion to the insured’s detriment, or refuses to settle a case or reimburse an insured for the entirety of the insured’s loss with no adequate justification.
If an insurance claim is denied, does this automatically constitute bad faith?
No. There are instances where insurance policy holders may attempt to get settlements that are not due, are misinformed about their benefits, or simply use fraudulent information to get benefits.
Will my insurance rates increase if I follow through with a lawsuit?
If an insurer attempts to increase your rates or drop you from a policy, they may find themselves involved in further legal action as this is an illegal practice.
What rights do I have as an insured party?
While certain rights of fairness are granted by law, the legal terms of your agreement will be stated in your contract. There are provisions of the law that protect insured parties from fraudulent or unfair terms disguised within contractual language. However, if an insurer is straightforward and you agree to fair terms, you will be obligated to uphold your end of the agreement. For example, most contracts obligate the insured to pay a monthly premium. If you default on your payments, you are subject to denial of your benefits or other penalties based on how your contract is written. If your insurance company refuses to make good on its obligations, you have a right to hire an attorney to help ensure that the terms are met.