How do you know if you are in the middle of a bad faith claim with your insurance company? When an insurance company is investigating personal claims and dealing with settlements, they are required to act in good faith – as in, honestly and fairly – toward policyholders and third-party applicants. If you feel that your insurance company has been acting in bad faith towards you, you may be able to file a lawsuit. Read on to learn how to identify and deal with insurance bad faith claims.
What is an Insurance Bad Faith Claim Against an Insurance Company?
Bad faith claims are when an insurance company has dishonest or unfair dealings. There are many examples and tactics of bad faith claims, some of which include the following:
- Ignoring phone calls, emails and other forms of communication without valid reasoning
- Failing to provide payments for a valid claim without a rational basis
- Rejecting a claim without proper investigation
- Implementing threatening, abusive or impertinent tactics
- Offering a significant less amount of money than what the value of the claim is actually worth
- Not confirming or denying coverage during a reasonable time period
- Failing to enter into negotiations for any settlement of the claim
- Misrepresenting the law or policy language
- Not acting promptly after a claim
- Failing to respond to a demand that has a time limit
- Not giving a valid reason or explanation for denying a claim
These are just a few ways an insurance company can act in bad faith. Make sure you are aware of these tactics when you are negotiating with an insurance company and dealing with their claims and representatives. Insurance bad faith claims come in many different forms. You will have a better chance of dealing with any insurance bad faith claims if you are aware of what insurance company bad faith tactics constitute bad faith in the first place.
How to File a Bad Faith Insurance Claim
From the get-go in negotiating a claim, make sure to keep all evidence of your correspondence with your insurance company. Whether it’s been through mail, over the phone or via email, you want to make sure that if you end up dealing with a bad faith claim, your argument has substantial proof.
If there comes a time that you believe your claim adjuster has acted in bad faith, write down the events that happened, their actions and the dates they occurred. Make sure to ask your claim adjuster for a written explanation of the reasoning for the insurance company’s actions. If they deny this request for documentation, write a bad faith insurance letter to your insurance company with a return receipt requested.
This letter should state that you believe the claim adjuster has acted in bad faith against you, and it should have the date(s) these actions occurred. Describe the actions you believe were in bad faith, mention their failure to provide documentation for their reasoning and show the evidence of bad faith you’ve been keeping documented. Sending this will show the insurance company you have not only documented a potential bad faith claim that can be used in the case of a lawsuit, but that you do not and will not tolerate illegal and improper negotiation tactics.
You can also file a report with the Florida Office of Insurance Regulation if you believe your insurance company has acted in bad faith. They will investigate your report, and if evidence of bad faith is found, the state will not only tell the insurance company, but they may fine them if the issue is not promptly taken care of.
If you believe an insurance company has acted in bad faith, don’t wait until the last minute to seek help for it. Having successfully taken care of hundreds of cases, The Berman Law Group is able to help get you the compensation you deserve. Call (800) 375-5555 now for a free consultation.