Holding Insurance Companies Accountable For Bad Faith Denial Of Legitimate Claims
Insurance companies often let people down at the time when they need help the most. While frustrating, a denied claim doesn’t always mean the insurer has broken any rules. But all too often, insurers do unfairly and intentionally deny, devalue or slow-pay valid claims.
When insurance companies fail to honor policies or engage in bad faith tactics, our lawyers at Mansell & Engel hold them responsible. Our highly experienced attorneys are dedicated exclusively to obtaining justice for people in Oklahoma and beyond who have been wronged by their insurance companies.
What Does Insurance Bad Faith Mean?
Being insured should mean that your insurance company will provide you with reasonable coverage according to the terms of your policy. However, sometimes the insurance company’s first priority is their bottom line. Their profit margin may not always align with doing right by their customers. When a company’s mission is to pay out as little as possible, this can shortchange policyholders who need and deserve to have their claims fully paid.
Insurance companies have a legal and contractual obligation to:
- Investigate claims properly
- Resolve claims in a timely manner
- Pay claims on time and in the correct amount
- Defend policyholders from claims by other parties
- Reasonably settle claims against policyholders
Failing to uphold these duties could constitute bad faith action under the law, especially when the tactics are intentional, systematic or egregious.
What Do Bad Faith Insurance Practices Look Like?
Examples of bad faith insurance actions include:
- Failing to conduct a timely and good faith investigation of your claim
- Denying a legitimate claim without providing any explanation
- Unreasonable interpretation of the policy
- Failing to pay a settlement recovered from a lawsuit
- Unduly delaying your claim for weeks and months
- Endless requests for “additional information”
- Intentionally offering a “lowball” payout out of synch with actual losses and terms of the policy
Insurance bad faith can happen to holders of all sorts of insurance policies, including home and auto coverage, life insurance and long-term disability insurance.
We Fight Against Insurers Acting In Bad Faith
An insurance policy is supposed to provide you with coverage. Unfortunately, not all insurance companies hold up their end of the bargain. There are a lot of different ways an insurer could act in bad faith. Examples include:
- Unreasonable delays: Suppose a home is completely destroyed by a natural disaster. If the insurer intentionally delays payments without a valid reason, this is an example of an unreasonable delay.
- Claim denials without a valid reason: Suppose an insurer denies a medical claim under a health insurance policy and cites an obscure or irrelevant policy exclusion. This scenario would suggest the insurer is acting in bad faith.
- Failure to conduct a proper investigation: Insurers are required to investigate claims before issuing a denial. If an auto insurance company refuses to review security camera footage that proves the policyholder was not at fault for an accident, they fail in their duty to conduct an investigation.
- Changing the insurance policy language: Suppose you have had a life insurance policy for years and you submit a claim after your loved one’s death. If an insurer retroactively changes the terms of the life insurance policy to exclude the cause of death or reinterprets the policy to exclude the cause of death, you may have a claim for bad faith insurance practices.
- Lowball offers: If a person is injured in an automobile accident and the insurance company offers substantially less than the claim is worth in the hopes that the policyholder will accept it out of desperation or lack of knowledge, they could be guilty of a bad faith insurance practice.
Insurance companies are required by law to act in good faith. When they don’t, you may be able to hold them accountable for their bad practices.
Potential Remedies For Bad Faith Practices
If you believe your insurer has acted in bad faith against you, there are legal options that can hold them accountable. If they violated the terms of your policy, you can pursue a lawsuit against them for breach of contract. If you prevail, the insurance company may have to pay the original claim plus attorney fees, compensatory damages and sometimes punitive damages. Our lawyers are well-versed in insurance company tactics and have successfully sued the biggest insurers for bad faith.
Talk To An Insurance Bad Faith Lawyer Today
If you’d like to learn more about your legal options for insurance bad faith, contact us to schedule an appointment with one of our experienced attorneys. You can reach us at 405-212-5921 or by sending us a message.