What Can You Do about Bad Faith Insurance?
Each month you pay an insurance premium you act in good faith toward the insurance company. You trust that if the time comes that you need their help with what you have been paying them to make sure the company will also act in good faith. But, many insurance companies have recorded practices of acting in bad faith. Fortunately, there are laws that govern the practices of the insurance companies to enforce their acting in good faith.
If you have been a victim of bad faith insurance, you could be eligible to receive compensation from the insurance company.
What is Bad Faith Insurance?
When you purchase insurance, you enter into a contractual agreement with the insurance company. To fulfill your part of the agreement, you must pay the assigned premium amount in full and on time. To fulfill their part, the company must agree to fairly evaluate any claim and follow any laws about handling the claim.
But, many insurance companies look for ways to escape their obligation to pay. They act in “bad faith” and wrongfully deny claims.
Some common types of denied insurance claims are:
- Life Insurance
- Disability Insurance
- Accidental Death Insurance
- Automobile Insurance
- Property Insurance
Examples of Bad Faith Insurance Practices
There are many ways an insurance company can act in “bad faith”. Some examples of bad faith insurance practices include:
- Denying payment of a valid claim without reasonable cause
- Failing to thoroughly investigate a claim
- Delaying or discontinuing payment of a valid claim without reasonable cause
- Failure to process a valid claim on time
- Offering a settlement amount substantially lower than the claim’s true value
- Making an unreasonable demand for supporting documentation of the claim
- Refusing to provide a reasonable basis for denying a claim
- Failing to meet standards in an insurance policy
- Misrepresenting policy language and benefits
- Failing to follow all laws regulating process of insurance claims
- Ignoring communication from a claimant
- Using threatening or intimidating tactics against a claimant
Receiving Damages for Bad Faith Insurance Claim
Insurance companies proven to have acted in “bad faith” can be made to pay damages to the claimant they wronged. They could have to pay compensatory damage such as the policy’s general benefits, or any losses suffered due to the unfair claim denial.
Under Alabama law, an insurance company may also have to pay punitive damages. The amount of these damages is set by the court as a punishment for the insurance company’s misconduct. A claimant can only receive punitive damages if they prove the insurance company intentionally acted in “bad faith”.
Getting Help with Your Claim
Battling an insurance company can be complex and stressful. The insurance company will do all they can to deny any bad faith insurance practices. They will fight to make sure they pay the least amount of compensation possible. They will have a team of skilled attorneys fighting to protect their interests. That is why you need your own experienced personal injury legal representation. You need someone to fight for your rights.
Our attorneys have over 20 years of experience fighting against bad faith insurance practices. Contact us for a free evaluation of your situation to see if we can help you get the compensation you deserve. Call us now to set up your consultation at 1-800-884-9600.