Bad Faith Negotiations and Bargaining
When an insurance company acts in a manner that is inconsistent with state laws regarding the conduct of insurance companies, the insurer may be targeted in bad faith negotiations and bargaining with its victims - the insurance policyholders who suffered damages as a result of the insurer's unlawful business conduct.
What Is Bad Faith Bargaining?
When an insured has been wrongfully denied benefits under a valid insurance policy, this victim of bad faith has the legal right to seek compensation in bad faith negotiations/bargaining regarding the insured's damages. An experienced insurance bad faith attorney is the best advocate for protecting a policyholder's right to fair compensation, through bad faith negotiations.
As a part of bad faith negotiations, it is usually argued that the policyholder is eligible to receive:
- The amount of money that the original claim would have yielded
- Compensation for any further losses that were suffered
- Potential reparations for pain and suffering
- Attorney fees
- In some cases, punitive damages (compensation that is intended to punish the insurance company)
Bad Faith Bargaining Definition
Bad faith bargaining can occur at any point during insurance business dealings or potential legal proceedings to determine the compensation a victim of bad faith will be awarded in a bad faith lawsuit. Bad faith negotiations also take place during legal proceedings when, through the civil court system a legal judgment determines the type of damages that will be awarded to the victims of bad faith.
Bad Faith Argument
As a general rule, insurance companies are required to conduct business through good faith and fair dealing standards. This means that an insurance company and its respective agents should conduct business with their clients in a manner that is consistent with fair, open and honest insurance practices.
Examples of Bad Faith Bargaining
Examples of bad faith bargaining abound. Companies that provide insurance policies for any of the following have a legal duty to act on their policyholders' behalf:
- long-term care
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