Holding Insurers Accountable For Bad Faith
The attorneys at Mannion Lowe & Oksenendler, A Professional Corporation focus our practice on cases of insurance bad faith, where an insurance company has refused to pay benefits or taken other unreasonable actions in violation of the implied covenant of good faith and fair dealing contained in every insurance policy.
To learn how we can help you resolve an insurance dispute, send us an email to schedule a consultation with a lawyer.
Unreasonable Denials And Other Bad Faith
We buy insurance for security and peace of mind, but we need to know that it will be there for us when we need it. It is reasonable to expect insurance companies to investigate claims and only pay benefits to policyholders with covered losses and current policies. In fact, if you were a shareholder of an insurance company, you would be upset if they just paid out claims without taking steps to make sure the claims were valid. However, when an insurance company takes unreasonable measures with the motive of denying claims, it has likely crossed the line into bad faith, and such companies can and should be held liable for the damages their actions cause.
There are many ways in which an insurance company can act in bad faith, including the following:
• Denying that a valid claim is covered
• Only paying partial benefits
• Failure to defend a third-party claim
• Refusing to settle with a third party
• Failing to properly investigate a claim
• Undue delay in claims processing, even if benefits are eventually paid
• Offering an unreasonably low settlement amount
• Canceling or rescinding a policy in order to avoid paying on a claim
Bad Faith Versus Breach Of Contract
Keep in mind that an insurance company can make the wrong decision and not be in bad faith. Proving bad faith means showing that the company’s practices were unreasonable in light of the customary course of business in the industry and also that the company’s motives were wrong. However, even if an insurer wrongly denies a claim in good faith, it may still be liable to the policyholder for breach of contract. In such a case, the policyholder should still be able to recover damages and receive the benefits promised by the policy.
Discuss Your Concerns With An Experienced Attorney
At Mannion Lowe & Oksenendler, A Professional Corporation, you will find a team of attorneys with over 70 years of combined legal experience, ready to take on the largest insurers and hold them accountable for their actions. You filed a claim because you needed your insurance policy to do what it is supposed to do; you didn’t pay all those premiums for nothing. If your insurance company is denying your claim or taking other actions in bad faith, contact Mannion Lowe & Oksenendler, A Professional Corporation for effective representation from an experienced insurance lawyer. Reach our law office today by calling 800-724-6188, or sending us an email now.