When, as a policyholder, you file an insurance claim, you expect the insurance company will act in good faith. That expectation is supported by law in any state, which means insurance companies are bound to the principle of not trying to unfairly deny your claim. With all that said, it still happens, and in a lot of cases insurance companies get away with bad faith claims because policyholders don’t know their rights.
The scope of bad faith insurance claims is quite broad. Both actions and inactions, including refusal to investigate to not negotiating settlement, may constitute a bad faith insurance claim. The following five examples illustrate common types of bad faith insurance claims which policyholders may encounter.
Unwarranted Denial of Coverage
If an insurance company denies your claim, they have to provide good reason which is in line with the terms of your policy. It is important to gather evidence of why a denial is unwarranted in order to fight bad faith insurance claims. You should also consult with a qualified and experienced lawyer in your state.
Failure to Communicate Pertinent Information to the Claimant
The insurer has a duty under the law to act in good faith and fair dealing in all aspects of an insurance policy. This includes ensuring pertinent information is communicated to any claimant. You may record evidence of instances where the insurance company failed in this duty in order to support a bad faith insurance claim.
Failure to Conduct a Reasonable Investigation of the Claim
In simple terms, a reasonable investigation would include looking at all the available evidence and circumstances in order to make a decision on a claim. If the insurance company denies your claim based on flimsy reasoning, you may have grounds for believing they did not conduct a reasonable investigation of the claim. Bad faith claims may involve the insurance company ignoring evidence that would have otherwise support the policyholders claim.
Refusal to Pay the Claim Without Investigating
An insurance company cannot deny your claim without first conducting a reasonable investigation. If the insurance company outright refuses to conduct an investigation or denies a claim without showing evidence on an investigation, it is time to fight back. Hire a lawyer to help you build your case and compel the insurance company to treat you fairly.
Failure to Deny or Pay the Claim within a Reasonable Period of Time
When an insurance company or its representatives dawdle on an insurance claim or fail to deny or pay the claim within a reasonable time, you may have a case for suing the company. You are entitled to have your claim investigated fairly and within a reasonable time period.
Legal Support in Georgia
You will likely need legal support when it comes to fighting insurance bad faith claims. The team of legal professionals at H. Lehman Franklin P.C. has extensive experience in all relevant areas of the law. We welcome you to call today at 912-764-9616 or email us at email@example.com for a one-on-one consultation which will allow us to help you evaluate your case.