California Insurance Bad Faith Lawyer
Insurance companies are experts at finding ways to avoid paying policyholders what they are owed, but an experienced insurance law attorney can help you secure compensation when an insurance company has acted in bad faith.
What is Bad Faith Insurance?
Insurance companies have an implied duty of fair dealing and good faith that must be upheld for each of the policy holders they ensure. When an insurance company delays, underpays, or flat out denies a claim in bad faith, this is called bad faith insurance. Not only is this an unethical practice conducted by many insurance companies, but it is also opens the door for the policyholders to take legal action against the insurers for bad behavior.
Bad faith insurance can occur with first-party and third-party insurance claims across different insurance industries including health insurance, property insurance, life insurance, and disability insurance among others.
The set of laws concerning bad faith insurance cases varies from state to state. In some areas of the United States, these cases are handled under tort law, where others they are considered a breach of contract. Under bad faith law, the policyholder must be able to prove that the benefits they were due under their insurance policy were underpaid or withheld entirely and that the insurer’s reasoning for why they denied, delayed, or underpaid on the claim was not reasonable.
In some states, a policyholder may also be able to sue for both a statutory bad faith claim as well as a common law bad faith claim, where statutory is more based on the state’s law regarding bad faith insurance.
If an insurance company is found to be guilty of acting in bad faith, they can be liable for a huge list of fees including: judgments in excess of the insurance policy limits, emotional distress suffered by the policyholder, any financial losses the policyholder may have suffered as a result of the denied claim(s), statutory penalties,
Insurance Bad Faith Examples
Bad faith insurance can be dangerous for individuals who have a legitimate claim for needing to use their coverage. In the case of health insurance, bad faith claim denials can cost policyholders years of their life and even their lives themselves.
An example of this would be a man who is denied insurance coverage for a CAT scan or MRI when he is experiencing various symptoms of a brain tumor. If it is found at a later point that he did in fact have a brain tumor, and that the insurance company acted in bad faith denying his claim, then this is a solid foundation for a bad faith insurance lawsuit. These are the types of bad faith insurance examples you hope you never have to see, but are sadly not that uncommon.
Other examples of bad faith include an insurance company’s delaying in the handling of a claim, refusal to properly investigate a claim, or making arbitrary requests for proof from the policyholder regarding the loss. Each of these examples breaches the covenant of fair dealing and good faith and may be grounds for a bad faith insurance lawsuit.
Find a Bad Faith Insurance Attorney in Los Angeles Today
You need a bad faith insurance attorney that has experience with these cases. One that can get you the best return for the injustices you’ve suffered at the hands of greedy insurance companies. If you’re being treated unfairly by your insurance company, Heidari Law Group can help you settle your legal disputes. Give us a call today at 1-833-225-5454 to get started or send us a message at [email protected].