The goal of insurance companies is to limit their liability and maximize their profitability. An insurance claim dispute occurs often because these insurance companies benefit from minimizing how much they pay you. Insurance companies sometimes violate principles governing insurance laws and regulations, wrongfully deny your legitimate insurance claim, delay in making a decision or in paying your claim, or require unreasonable actions or documentation on your part to prove a claim, all in an effort to avoid their obligation to pay you.

Insurance companies often deny legitimate insurance claims by saying a condition is not covered, was pre-existing, or that you’re not really damaged, disabled or injured. In many cases, insurance companies deny a claim in hopes that you are discouraged and drop the matter. Even if you’ve been told a decision is final, and that the case is closed, you still have rights and options. Whenever your insurance company fails to honor its obligations to you, you may have a claim for bad faith.

Insurance companies act in bad faith when they engage in the following kinds of practices:

• Failing to investigate a claim in a timely and thorough manner
• Delaying payment of benefits for an unreasonable time
• Refusing to settle a claim when liability and damages are clear
• Failing to handle a claim in “good faith”
• Denial of coverage on an active policy
• Terminating coverage without notifying a policyholder
• Refusing to extend a policy without notifying the policy holder

• Bad faith claims apply to all kinds of insurance, including health, dental, automobile and homeowners, to name a few.

If a policyholder can successfully show that an insurer breached the covenant of good faith and fair dealing, the insured can recover all damages caused by the breach. This includes general damages, loss of use of the insurance proceeds, attorney’s fees and perhaps punitive damages in cases of egregious and outrageous misconduct. Read more about Insurance Claims in the F.A.Q. section at the bottom of this page.

If you or someone you know believes an insurance company acted in bad faith in handling a claim, contact the Tom Crosley Law Firm by calling toll free 1-877-535-4529, complete the contact form or e-mail us NOW for a FREE, NO COST, NO OBLIGATION CONSULTATION.

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