Frequently Asked Questions 
About Bad Faith INsurance

If your insurance claim is denied, the first step is to find out why. If your insurance claim was unfairly denied, you may want to talk to an attorney right away about taking action. However, if your claim is denied for another reason, such as a lack of evidence, you may be able to file an internal appeal with the insurance company to reverse its judgment. If your appeal is rejected, or if you feel your insurance company is treating you unfairly, you may want to file a complaint with the Texas Department of Insurance (TDI). If neither your internal appeal nor your TDI complaint succeeds, you should talk to a denied insurance claim lawyer about sending a letter laying out your demands. If your demand letter is ignored, it’s time to consider filing a lawsuit.

Unfortunately, there are many valid reasons why insurance companies deny claims. Some common valid reasons for a claim denial include missed premium payments, late filing, a lack of evidence, or a lack of coverage for a given type of damage. However, there are also wrongful reasons why an insurer may deny your claim, specifically the desire to avoid paying what it owes. If your insurance company has denied your claim without a clear cause, if you can’t determine the cause, or if the cause given seems unreasonable, you should contact a bad faith insurance lawyer for help.

There are a few reasons why you might hire an insurance lawyer, but each is related to actions by your insurance company. First, you may want to hire a lawyer to help you find out why your insurance company rejected your claim. On the other hand, you will definitely want to consult with an attorney if you think your insurance company is treating you unfairly or illegally. Finally, an attorney can help you if you are unable to get the insurance benefits you feel you are owed on your own.

To determine whether or not your insurance provider acted in bad faith in your case, you can watch out for a few common types of bad faith tactics. First, insurers may attempt to delay, undervalue, or deny valid claims without a fair reason. Next, it’s also bad faith if your insurance company refuses to investigate your claim, or refuses to give a reason for your insurance claim denial. Finally, your insurance company may try to misrepresent the details of your insurance contract in an effort to deny your claim or convince you that you do not have a valid claim. While these are bad faith tactics that can be seen in cases involving most types of insurance, it’s worth noting that there are more bad faith tactics specific to different insurance types, like health insurance or car accident insurance. The best way to determine whether or not your insurer acted in bad faith is to get help from a bad faith insurance lawyer.

If your insurance claim has been denied, money is probably already a concern right now. With that in mind, our insurance attorneys are proud to work on a contingency fee basis. That means that we only get paid if and when you do. Rather than being paid out of your pocket, our pay is factored into your total settlement amount.

The vast majority of all legal cases are settled long before going to court. However, if your case requires it, the team here at Millin & Millin Attorneys is fully prepared to go to court and win you whatever compensation you deserve.

The good news is that you may have more time than you think to file a bad faith insurance claim. Rather than starting at the date of your accident, the timeline for bad faith insurance claims starts either on the date when the first bad faith act occurred or the date on which the policyholder discovered the act. You will have two years from that date in which to file a lawsuit. To learn more about your timeframe for filing, you should consult with an attorney.

The TDI helps consumers by following up on complaints against insurance companies to settle insurance disputes. The TDI will first review your case for wrongdoing before reaching out to the insurance company and giving them a chance to respond. That alone may be enough to prompt your insurance company into paying what they owe. However, it’s important to remember that the TDI has limited powers, and they won’t be able to force a company to reverse its judgment. You may still need to file a lawsuit to get whatever compensation you may be owed.

A demand letter is just what it sounds like: it’s a letter that you send to your insurance company letting them know your demands and informing them of your intent to sue if those demands are not met. Generally, you should send a demand letter if you are unable to get the insurance coverage you feel you are owed either through an insurance claim appeal or a complaint with the TDI.

The method for proving bad faith in court will vary depending on the type of bad faith act involved. There are two primary types: statutory claims and common law claims. Statutory claims are those that involve breaking Texas law, and proving them means proving that the insurer did, in fact, break the law. On the other hand, common law claims have to do with court precedent and are proven by showing that the insurer acted unreasonably in their treatment of the policyholder. It’s important to note that many cases will involve both types of claims.