When we purchase insurance, we do so with the expectation that our policy will provide us with the financial protection we need in case of an accident or injury. We trust that our insurance company will be there to help us out when tragedy strikes and that they will act in good faith to pay our claims. Unfortunately, this isn’t always the case. Reach out to Heintz Law today for help.
Bad faith insurance is an unethical and illegal practice that occurs when an insurer fails to pay out policy benefits that a policyholder is legally entitled to. This breach of contract can be incredibly damaging for the policyholder, as they have been paying their monthly premiums on time and have met all requirements for filing a claim.
When determining whether or not your insurer is acting in bad faith, it is essential to understand the legal definition of bad faith. Generally speaking, bad faith occurs when an insurance company fails to fulfill its contractual obligations and duties to its policyholders. This can include denying a claim without properly investigating it first, canceling a policy after a claim has been made, or offering an unreasonably low settlement amount for a legitimate claim.
Other signs of bad faith tactics:
If you feel that your insurer is acting in bad faith, it is essential to speak with experienced bad-faith insurance lawyers as soon as possible. These lawyers are knowledgeable about the laws surrounding insurance companies and can help you determine if your insurer’s actions constitute bad faith. They can also provide advice on how best to proceed with filing a lawsuit against the insurer if necessary.
In addition to getting your losses covered, a bad-faith insurance lawyer will hold the insurance company responsible by pursuing:
As an insurance policyholder, it is essential to understand your rights and the duties of the insurance company. State laws regulate insurance companies, ensuring that they are licensed, remain solvent and that their rates remain regulated. This helps to avoid bad-faith insurance practices. Beyond these regulations, insurance companies have several duties they must uphold to you, their policyholders.
One of the primary duties of an insurance company is to investigate your claim and offer a monetary valuation. When your insurance company delays or refuses to investigate, they are acting in bad faith.
Any insurance company must uphold the insurance policy the policyholder is paying for. Additionally, suppose the insurer fails to provide you with a reasonable explanation for denying your claim or fails to respond within a reasonable amount of time. In that case, this may also be considered bad faith. It is essential for policyholders to understand their rights so that they can take action if necessary when their insurer does not fulfill its obligations.
When an insurance company acts in bad faith, it can be held liable for damages. The types of damages that can be recovered in a bad faith case depend on the specific circumstances of the case. Generally speaking, there are two main categories of damages that may be awarded: economic and noneconomic.
Economic damages are intended to compensate the plaintiff for any direct financial losses they have suffered as a result of the insurer’s bad-faith conduct. These may include:
Noneconomic damages are designed to compensate for any harm that cannot be measured financially, such as pain and suffering or emotional distress.
In some cases, punitive damages may also be awarded if the insurer’s actions were egregious or malicious. Punitive damages are intended to punish the insurer and deter them from engaging in similar behavior in the future.
Call our experienced personal injury attorneys today for help navigating your insurance claim.
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