Insurance Bad Faith

Insurance bad faith refers to the failure of an insurance company to pay out on a legitimate claim filed by one of it's insured. By entering into a contract with clients, insurance companies are required by insurance law to honor claims for covered services, and if they reject a claim without a valid reason, they can be prosecuted.

Types of Insurance Bad Faith

Bad faith on the part of insurance companies can take several possible forms. These types of insurance bad faith include:

Denying a claim
Failing to investigate a claim
Delaying payment
Paying out on only part of a claim
Wrongly interpreting the language of the policy in order to deny coverage
Denying all claims when they are first filed

The only instances in which an insurance company has the right to deny a claim are:

If the insured does not live up to the insurance contract; for example, by not paying premiums
If the claim is not covered, as outlined in the insurance policy
If the claim is fraudulent

Speak to a Bad Faith Insurance Attorney

If you or a loved one has been the victim of insurance bad faith, it may be in your best interests to contact an insurance bad faith lawyer for further information and an evaluation of your potential case.