An insurance company is obliged to act with the best interest of the insured in mind. When an insurance company fails to act in an honest and fair way towards its policy holders and/or is deceitful, insurance bad faith is said to have occurred.
Situations in which Insurance Bad Faith can occur vary widely. Insurance Bad Faith may occur in conjunction with auto insurance, health insurance, uninsured/underinsured motorist insurance, life insurance, homeowners insurance, medical malpractice insurance, and disability insurance.
Insurance Bad Faith behavior includes:
▪ Failure to investigate a claim in a proper and reasonable manner
▪ Withholding benefits without cause
▪ Delaying payment of claims for unreasonable length of time
▪ Denying coverage
▪ Denying payment on claims
▪ Underpaying claims
▪ Undervaluing a claim
▪ Unfairly refusing to settle and/or reimburse claims
▪ Abusive or unreasonable claims process
▪ Cancellation of insurance policy unjustly
Any individual, including insurance policy holders, can bring a civil action against an insurance company when the individual suffers damage due to an insurance company’s behavior. This type of claim can be brought against companies writing policies for auto, health, life, disability, and medical malpractice insurance.
In addition, A third party, lacking an insurance policy with a given insurance company, may file a claim for insurance bad faith against the insurance company. Third party bad faith claims occur in cases in which serious injury or death occurred due to the at-fault party’s insurance company’s failure to adequately protect the person who has a policy with that insurance company. If you or a loved one has become the victim of an insurance companies bad faith, call Metts Legal, P.A. today for a free consultation.