Bad Faith Claims and Your Rights

Defining Bad Faith

Bad faith happens when insurance companies fail to honor their obligations to policyholders. This can involve unfair claim denials, unreasonable delays, or inadequate investigations. Essentially, bad faith means the insurer is not acting in good faith and is violating the trust and contract established with the policyholder. An insurance company is bound by the terms of the policies they issue. When they act in bad faith, they are breaching a legal duty. Understanding what constitutes bad faith is the first step in protecting yourself against such practices.

Key Types of Claims

There are several ways in which an insurance company might act in bad faith. Recognizing these can help you identify when you are being treated unfairly.

• Unjustified Claim Denials: One of the most common forms of bad faith is the unwarranted denial of a claim. If your claim is denied without a valid reason or without a proper investigation, the insurer may be acting in bad faith. This includes ignoring evidence that supports your claim or providing inconsistent or false reasons for the denial.
• Delayed Payments and Investigations: Another tactic insurers use is delaying the investigation or payment of a claim. While some delays are inevitable, unreasonable delays can indicate bad faith. Insurance companies might stall the process in hopes that policyholders will give up or accept a lower settlement.
• Misleading Policyholders: Providing false or misleading information about policy coverage or claims processes is another form of bad faith. Insurers might misrepresent the terms of the policy or the extent of coverage to avoid paying out claims.
• Inadequate Settlement Offers: Offering significantly lower settlements than what is fair or warranted is also a common bad faith practice. Insurers may pressure policyholders into accepting these offers by exploiting their financial stress or lack of knowledge about their rights.

The Impact on Policyholders

Experiencing bad faith from an insurance company can have severe emotional and financial impacts. The stress of dealing with unjust claim denials or delays can be overwhelming, especially when you are already facing a difficult situation, such as an accident, illness, or property damage.

• Financial Strain: When an insurance company fails to pay out a valid claim, the policyholder is left to cover expenses that should be handled by the insurer. This could lead to financial hardship, especially if the costs are related to medical bills, property repairs, or lost income.
• Emotional Distress: The stress caused by bad faith practices can take a toll on your mental health. Dealing with an uncooperative insurance company while trying to recover from an incident can lead to anxiety, depression, and other emotional issues.

Standing Up to Bad Faith Practices

If you believe you are a victim of bad faith insurance practices, it is important to know that you have legal rights and options. The law protects policyholders from unfair treatment, and there are steps you can take to hold your insurer accountable.

• Document Everything: Keep detailed records of communications with your insurance company, including emails, letters, and phone calls. Document any evidence that supports your claim and any instances where the insurer's actions seem unreasonable or unfair.
• Seek Legal Assistance: Speak with an experienced personal injury lawyer who specializes in bad faith insurance claims. A personal injury attorney can assist with gathering the proper evidence and build a strong case against the insurer.
• File a Complaint: In some cases, you might want to file a complaint with the state's insurance department. This can prompt an investigation into the insurer's practices and potentially lead to regulatory action.

Do You Need a Reliable Local Personal Injury Lawyer?

At the Law Offices of Andrew Zeytuntsyan, we are committed to standing up for policyholders' rights. Our team has extensive experience handling bad faith claims and is here to provide personalized, effective legal representation. We understand that every case is unique, and we take the time to thoroughly investigate and understand the specifics of your situation. Contact us to schedule a consultation with a dependable personal injury attorney.