Insurance Carrier Bad Faith is an increasingly serious problem in today’s world. Almost everything we do requires the involvement of an insurance provider in one way or another. Even a simple family trip to the beach requires automobile and possibly health insurance. The idea behind an insurance policy is that you, along with a large group of others, regularly pay into an accumulated fund from which the insurance provider may profit. In the event of a misfortune, the insurance provider is then obligated to pay for damages according to the terms of a prearranged contractual agreement.
What is Insurance Carrier Bad Faith?
This is a legal term referring to a claim an insured person may make against an insurance provider for acting in a way that violates the contractual agreement between the insured and the insurance company. In most states an insurance provider owes their clients the duty of fair dealing and good faith–these are referred to as implied covenants. In cases where an insurance company violates this implied covenant, the policyholder may file an insurance carrier bad faith claim.
There are many examples of this, unfortunately. Some of the most common include:
- Insurer discounts delays or denies payment without a fair reason
- Insurer fails to effectuate or attempt prompt, reasonable assessment of damages and fair claim settlements to the insured within a reasonable period where liability is unambiguous
- Insurer fails to acknowledge and promptly reply after being notified of a covered claim
- Insurer attempts to settle claims on the basis of a policy that was altered without prior the notice, or consent of the policyholder
- Insurer fails to notify the policyholder of an arbitration award appeal that attempts to settle a claim for a lesser amount than the arbitration awarded
- Insurer neglects to make complete and satisfactory payment of a claim before requiring settlement, or the insurer exhausts the limits of a third-party insurer
- Insurer attempts to apply indiscriminate measures, reference or procedures which reduce the highest amount or value of full payment of a claim
These are just a few of the many possible ways an insurance company may be guilty of bad faith. It is important therefore that the insured understands his/her rights in this particular arena so that if the insurance company has acted in bad faith, the victim can take action.
What can I do if my insurer is acting in bad faith?
If you are the victim of an insurance carrier’s bad faith, you are not helpless. You have several options. Recognizing bad faith is your first and best line of defense. However, it may be difficult to know whether your insurance company is violating the implied covenant without the expert advice of an attorney who specializes in these types of cases.
Consult a Bad Faith Attorney
If after reviewing the specifics of your claim, the attorney believes you were the victim of a denial based on bad faith, he or she may take your case on a contingent basis.
If you have fallen prey to a bad faith insurer, call our law firm without delay to receive our free case insurance form and legal review. At Knopf Bigger we are determined to achieve the justice you deserve and get you the compensation you need.