Insurance Bad Faith FAQs
What is insurance bad faith?
Insurance bad faith is an insurance claim that is wrongfully denied by the insured's insurance company. An insurance policy is considered a contract between you and your insurance company. When an insurance company unreasonably withholds the benefits of the policy from its insured, it is considered to be in bad faith.
What is insurance "good faith?"
The duty of good faith means that your insurance company must:
-Adjust your claim by within a timely manner
-Attempt to find a basis to pay the claim rather than trying to deny it
-Cooperate with you regarding your claim
-Inform you in writing specifically why they are denying your claim.
What main obligation does my insurance company
owe to me regarding claims?
Your insurance company has a duty to handle your claim promptly and in good faith.
Do I owe any obligations to my insurance company?
Yes. You also have a reciprocal obligation to act fairly and deal in good faith.
What should I do in the event of a claim?
You should immediately:
-Notify the insurance insurance company and agent
-Document all events, notes, and communications made with the insurance company
-Collect and review the insurance policy as it relates to your claim
-Submit your claim promptly.
What damages can I recover if I sue my insurance company for bad faith?
If the court finds the insurance company to have acted in bad faith, you may be eligible to recover the claim amount as well as all losses and damages you suffered as a result of the denied claim.
If my insurance company denies my claim, do I have any legal rights?
Yes. If your insurance company fails to honor its contract and pay a valid claim, you have the right to bring a civil action for damages against them.
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