Dealing With Insurance Companies: 7 Examples Of Bad Faith Practices
When someone pays their insurance premiums, they expect a certain level of coverage. Becoming injured or suffering property damage leads to great stress. A person experiences even greater anxiety when their insurance company rejects the claim.
Insurance companies hold the responsibility of investigating, negotiating, and settling claims lawfully and promptly. When an insurance company does not live up to its responsibilities, policyholders may have a claim against their insurance company. Bad faith claims frequently require aggressive legal representation.
Seven Examples of Bad Faith Practices
Policyholders need to learn about the common bad faith practices they may experience with their insurance companies. Being mindful of these will help claimants avoid problems with their claims. A person should contact a lawyer to learn more about their options from Raizner Slania LLP.
- Unreasonable delays should not occur when an insurance company is working within the confines of the law. If an insurance company seems to be dragging its feet, claimants should pursue outside legal help to encourage the insurance company to act fairly.
- Sometimes, insurance companies refuse to investigate claims comprehensively. Without a full investigation, the insurance company cannot make an appropriate decision. Claimants cannot be treated fairly when insurance companies refuse to analyze claims.
- Insurance companies that use deceptive practices to deny claims must be held accountable for their actions. Every insurance policy carries with it an implied duty of good faith. If the insurance company does not deliver fair practices, claimants have the right to pursue compensation and an outside reexamination.
- Lowballing settlements is commonplace in the insurance industry. Claimants must remember that insurance adjusters are operating on behalf of their companies. They will do everything possible to settle for less or even deny claims.
- In some cases, insurance companies will attempt to misrepresent the legal terms of the policy. Policyholders must review their policies carefully and ensure they know the coverage areas and exclusions before they file a claim.
- Insurance companies will sometimes refuse to pay on valid claims. If the insurance company declines to pay on a claim that is covered by the insurance policy, this is considered a bad faith practice.
- Another possible bad faith practice occurs when an insurance company begins making threatening statements to the claimant. When an insurance company makes a threat, the claimant must call their state’s insurance board and a lawyer.
Claimants Must Comprehend Their Rights
Unfortunately, many people are unaware of the rights they hold as policyholders. When a person is ignorant of their rights, they may not realize their insurance company is manipulating a bad faith practice. Reviewing their policy and ensuring they know their rights will protect claimants throughout the process of filing claims.
Schedule a Consultation Appointment
If a person feels their insurance company is carrying out bad faith practices, they should pursue legal help immediately. Scheduling a consultation appointment with a lawyer allows a person to discover further information on their rights and the legal opportunities they have available.
Get Started Right Away
Dealing with bad faith practices is highly stressful for claimants. After paying their premiums faithfully, policyholders expect their insurance companies to act fairly. Unfortunately, fairness is not always given. Getting legal help from the very start will ensure that a person’s rights remain safeguarded throughout the process.
No one should have to deal with an insurance claim alone. When insurance companies are being unfair, getting legal help will aid claimants in getting the fair compensation they deserve.