Insurance Bad Faith
Insurance companies have a duty to act in good faith towards their policy holders. When insurance companies act in bad faith, it is a breach of duty and provides grounds to initiate a lawsuit. If you have experienced undue delay, denial of payments, improper investigation/valuation, or other similar acts from your insurance company, then your insurer may be acting in bad faith. Please contact us using the form on this page or call us at 424-245-5505. You may be part of a class action lawsuit.
What is Insurance Bad Faith?
When you, as a policy holder, are paying your insurance premiums you are doing so in good faith. You do so with expectations that if you need to file a claim, the insurance company will cover you for the full value of the claim. This is true with all types of insurance, including homeowners insurance, business owners insurance, and car insurance.
When an insurance company engages in unreasonable delay, or wrongly refuses to cover the full value of the claim as promised in the policy, their conduct can amount to what is known as insurance bad faith. Your insurance company does not have the right to deny or underpay a claim that is clearly covered by the policy.
Some examples of insurance bad faith may include:
• Denial of a claim without sufficient explanation
• Excessive delay of a claim judgment or payment
• Failure to provide an adequate claim settlement offer
• Failure to thoroughly investigate a claim
How Does This Affect Me?
When insurers cause undue delay, refuse to communicate, or otherwise hamper insurance payments it may not be just an inconvenience, it might a violation of the law. Whether an insurance company purposely acts this way or not, it has the effect of unnecessarily obstructing the insurance process. The poor performance of insurers can cause extreme financial hardship for policy holders.
If your insurance company engages in this type of behavior it can put you at risk. Legal remedies are available to victims of insurance bad faith. If an insurance violation has occurred you may be able to bring suit on behalf of a class in order to stop the unlawful practice.
Potential Class Action
A class action is a lawsuit brought by an individual on behalf of an entire class of similarly situated individuals. Since the vast majority of class members are represented by the individual, the class members need not be directly involved in the litigation. Actions initiated against an insurance company for failing to act in good faith on a class action basis can ensure your rights are protected and it can deter bad faith conduct against others that are similarly situated.
If you have experienced undue delay, denial of payments, improper investigation/valuation, or other similar acts from your insurance company, then your insurer may be acting in bad faith. Please contact us using the form on this page or call us at 424-245-5505. You may be part of a class action lawsuit.