Holding Insurers Accountable for Bad Faith Practices

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. The entire industry relies on consumers trusting that insurers will honor their policies if they need to file a claim. Unfortunately, some insurance companies value money over trust and act in bad faith in an attempt to avoid paying claims that should be fully covered.

The attorneys at Oksenendler Law, P.C. focus our practice on cases of insurance bad faith. We are dedicated to helping victims of bad faith insurance practices hold these companies accountable for fulfilling their contractual obligations. To learn how we can help you resolve an insurance dispute, email us to schedule a consultation with a lawyer.

What Is Bad Faith Insurance? Unreasonable Denials, Underpaid Claims, and More

Bad faith occurs when an insurance company has refused to pay benefits or taken other unreasonable actions violating the implied covenant of good faith and fair dealing contained in every insurance policy.

It is reasonable to expect insurance companies to investigate claims and only pay benefits to policyholders with covered losses and current policies. 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 they 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 investigate a claim properly
• Undue delay in claims processing, even if benefits are eventually paid
• Offering an unreasonably low settlement amount
• Canceling or rescinding a policy to avoid paying on a claim

Insurance Bad Faith or Breach of Contract?

An insurance company can make the wrong decision and not act 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, in addition to the fact 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

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. At Oksenendler Law, P.C., you will find a team of attorneys with over 70 years of combined legal experience. We are ready to take on the largest insurers and hold them accountable for their actions.

If your insurance company denies your claim or takes other actions in bad faith, contact Oksenendler Law, P.C. for effective representation from an experienced insurance lawyer. Reach our law office today to discuss how we can help you.