When dealing with insurance claim disputes, it is important to remember that insurance providers benefit by minimizing your claim. Insurance companies can violate the principles governing insurance laws and regulations, wrongfully deny your claim, delay in making a decision or in paying a claim, or require unreasonable actions or documentation on your part to prove a claim.
Often, insurance companies deny legitimate claims by saying that the condition is not covered, was pre-existing, or that youre not really disabled at all. In many cases, they deny the claim in hopes that you will be discouraged enough to drop the matter. Even if you’ve been told that their decision is final, and that the case is closed, you have rights and options.
If an insurance company refuses to pay a legitimate claim, you have a right to sue your insurance company to force them to honor the terms of the policy they sold you. An insurance company has a duty to deal fairly with its customers, giving more consideration to its insured customers than to its own interest. Whenever your insurance company fails to honor its obligations in its contract with you, you may have a claim for bad faith.
Insurers 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 the when liability and damages have become clear
Failing to handle a claim in “good faith"
Denial of coverage on an active policy
Terminating coverage without notifying policyholder
Refusing to extend a policy without notifying the policy holder
Examples of bad faith can include all kinds of insurance, from health and dental to automobile and homeowners.
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, in cases of egregious and outrageous misconduct, punitive damages.
If you or someone you know have an insurance claim involving significant injury or damage, call The Crosley Law Firm, P.C. at (210) 354-4500, complete the contact form or e-mail us for a no cost, no obligation consultation. We know how to deal with insurance companies. And we are committed to achieving the best possible result for our clients.
