Submit your Bad Faith Insurance claim details for a free, no obligation case review.
Get Started:
more_legal_areas bad_faithA bad faith lawsuit is brought against an insurance company when they are in breech of good faith and fair dealings. A bad faith lawsuit is applicable in cases where an insurance company unreasonably or willfully denies benefits to an insurance policy holder under enforceable or existing insurance policies. Automobile, disability, life, health, and property insurance companies who are in bad faith can all be charged in a bad faith lawsuit. Bad faith lawsuits are also known as unfair insurance claim lawsuits.
A bad faith lawsuit charges an insurance company with failing in their duty of good faith, which is an insurance company''s implicit responsibility to uphold. “Good faith” involves placing a policy holder''s interests ahead of the insurance company''s interests, adjusting claims within a reasonable timeframe, communicating the exact policy provisions by which a claim has been denied, and being open and honest in dealings with policyholders. An insurance company, acting under good faith, has the responsibility to find coverage that will pay a claim rather than finding a way to avoid paying a claim.
A bad faith lawsuit falls under the jurisdiction of the state legislation and justice system. There is no federal law that governs the standards of insurer conduct. Each state implements their own laws regarding bad faith lawsuits. Most states have an Insurance Department that is responsible for monitoring insurance companies and their agents, enforcing all applicable insurance laws, and handling any consumer complaints that should arise.
If an insurance company acts in bad faith, a policy holder has the legal right to seek compensation for damages in a civil bad faith lawsuit. In a bad faith lawsuit, a victim may be able to seek restitution for the amount of the original claim, the damages that were caused by the denial, and compensation for pain and suffering. In some cases punitive damages are awarded in a bad faith lawsuit in order to deter others from acting in bad faith. A bad faith lawsuit may also involve breech of contract charges against an insurance company.
Though every state has an insurance department, a compliant with these agencies does not always translate into favorable action in a victim''s case. Often complaints are deferred to the legal system. A bad faith lawsuit attorney can help a victim of insurance fraud recover their damages, while best protecting their legal rights and interests.
Every state''s laws governing bad faith lawsuits are different; therefore it is important to retain the legal services of an attorney who knows the laws applicable to your bad faith lawsuit. Statutes of limitation in bad faith lawsuits depend on the type of insurance policy in question, the theory behind your case, and the laws in your state.
A Montana woman was recently awarded $5.3 million in a bad-faith insurance case involving Fireman’s Fund Insurance Co. The verdict is the large...
A judge ordered the medical insurer Health Net Inc. to pay more than $9 million in damages to a woman after cutting off her coverage while she was being treated for breast cancer.
Treatment Stopped
Patsy Bates, a 52-ye...
After Hurricane Katrina left hundreds of thousands in Louisiana homeless, many turned to their insurance companies to cover their losses from the disaster. However, many homeowners found that whether or not they were backed by FEMA, they were still at ...