Bad Faith Insurance Complaints
Bad faith insurance complaints are very frequent in the U.S., especially concerning certain insurance companies. Complaints involving bad faith insurance practices may regard:
- Health insurance
- Long-term care insurance
- Life insurance
- Auto/truck/motorcycle/RV/boat insurance
- Homeowners or renters insurance
- Business insurance
Insurance Companies Often Engage in Bad Faith Practices
Allegations of bad faith conduct by insurers may describe practices such as:
- Unfair denial of a policyholder's claim for insurance benefits
- Unjustified termination of a policy
- Delay in the issuance of benefits
- Benefits that are less than should be issued
- Unresponsive insurance company staff
- Forgery of signatures or entire documents
- Use of biased investigators and/or medical, auto repair, home repair staff
Insurance Bad Faith Complaints Are Increasing
At the same time that consumers in the U.S. watch the debacle of bail-out money for insurance giants such as AIG, plus the healthcare reform issues highlight the healthcare insurance industry's exemption from antitrust laws, the general public is becoming more and more aware of the multitude of ways that insurance companies rip off their policyholders. Indeed, the numbers of insurance bad faith complaints are increasing each year, and state Departments of Insurance are keeping statistics that show the increases - by company and type of insurance.
Sample of a Bad Faith Complaint
There are so many examples of bad faith practices by insurance companies. A sample of a bad faith complaint is as follows: Desiree L., of Nantucket, Rhode Island signed up for an auto insurance policy with a well-known, major auto/home insurance company. The insurance policy was full of details about what was to take place if Desiree got into an accident that resulted in damage to the car (among other possibilities).
When Desiree got into a major accident while driving the insured vehicle, her car was totaled. The circumstances of the accident were rather simple, but it took months of phone calls and emails from Desiree to one Allstate claims adjuster, then another claims adjuster, and then another before any action was taken on her claim. When some investigation was finally conducted, some of the witnesses and evidence were no longer available. The insurance company at first refused to pay Desiree any money toward her claim. She then retained a knowledgeable attorney, who used the requisite skill and pressure to make the insurance company finally act in good faith and pay Desiree for the damages.
If you have your own bad faith complaint, contact an insurance bad faith attorney to schedule a consultation with a bad faith lawyer in your area.
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