After timely payments on your premium and faithful customer loyalty to your insurance company for years, it may come as a shock to discover that your insurer may not be as compassionate to you as you would’ve hoped. The haunting truth is that though insurance companies are not purposely wicked, their loyalty ultimately lies with profits. When negotiating insurance claims, insurance adjusters and other company representatives may act in bad faith.
While there are a number of issues that can arise when dealing with insurers, one of the worst is bad faith insurance. Unfortunately, customers aren’t usually aware of bad faith insurance until they are attempting to file a claim. This is when bad faith denial of claims begins to emerge, which is illegal and can affect policyholders tremendously.
Fortunately, with the right team of attorneys by your side, you can fight these illegal actions and gain back the benefits that are rightfully yours. Because bad faith insurance is unlawful, companies are susceptible to fines and punitive damages, which can run into the hundreds of thousands of dollars or even the millions.
Insurance companies are legally responsible for meeting their contractual obligations and processing claims fairly. Failing to meet these responsibilities is the most basic definition of bad faith behavior, and it includes a wide range of actions. If your insurance company’s conduct includes any of the actions or omissions listed below, they may be acting in bad faith:
Unfortunately, bad faith practices occur far too often, and insurance companies often maliciously take advantage of the fact that most policyholders aren’t always aware of their rights or legal options in bad faith insurance cases. When insurance companies refuse to act in good faith, a bad faith insurance lawyer can help you find the right path forward.
Thankfully, there are laws set in place to help prevent bad faith insurance practices from occurring. These laws allow individuals to take legal action for mistreatment and protect policyholders from unethical practices.
For example, one key protection often involved in bad faith claims is the Implied Covenant of Good Faith and Fair Dealing. This unwritten agreement is included in all insurance contracts, and it calls on the insurance provider to act fairly when processing claims and dealing with policyholders.
When insurers fail to comply with the Covenant of Good Faith and Fair Dealing, the law allows policyholders to hold insurers accountable through legal action. Texas law gives policyholders the option to seek full compensation for their original claim, as well as punitive damages in cases of extreme insurance company wrongdoing.
A simple disagreement between an insurance adjuster and policyholder about the total loss amount does not necessarily represent a bad faith practice. It is important to remember that a simple mistake or error caused by the insurer does not necessarily mean that they were acting in bad faith. Common reasons insurers deny coverage that are not examples of bad faith include:
Claims adjusters are employed by the insurance company to help process claims. Their responsibilities include:
Adjusters are key intermediaries between policyholders and insurance providers, with many bad faith cases involving unfair treatment by adjusters. Still, often when adjusters delay payment or refuse to conduct prompt investigations, this behavior is related to unfair company policies rather than that adjuster’s personal motives. Fair claim practices should be built into company policies.
If your insurance company violates your insurance policy by acting in bad faith, you have options for recovering compensation. While legal action may not be necessary, it’s typically in your best interest to get assistance from a capable bad faith insurance lawyer if you are facing unfair practices. In cases of insurer bad faith, you can follow the steps below to access fair coverage.
If you believe that your adjuster is acting illegally, then the first thing you will want to do is file a complaint with that adjuster’s supervisor. Note the reasons why you believe the adjuster is negotiating in bad faith and discuss your concerns with the supervisor. Make sure that you do not initiate the conversation by threatening to file a suit, as this will only cause them to treat you as a disgruntled customer rather than with the consideration you deserve
Inform the supervisor that:
To be taken seriously, it will be exceedingly important to gather (and offer) as much proof of the bad faith dealings as possible. Always take good notes when talking with your adjuster so that you can provide viable examples of the bad faith tactics.
After the discussion with the supervisor, send them a certified letter that confirms the date and time of the conversations. Also reiterate the reasons you believe the adjuster is acting illegally.
If your insurer continues to deny you a fair settlement, then you can file a complaint with your state insurance board or the Texas Department of Insurance (TDI). An investigation will help to determine if the insurers were acting in bad faith. However, the insurance board can only levy fines against the company, but CANNOT force them to pay a claim.
If your insurance company appeal and TDI complaint were unsuccessful, you’ll need a competent and experienced law firm like Millin & Millin Attorneys to help you file a bad faith lawsuit. The first step is to send a demand letter informing the insurance carrier of your demands and intent to sue. If those demands are ignored, the next step is to file a lawsuit. While most bad faith cases are settled during settlement negotiations, our team is ready to represent your claim in court if needed.
If after several attempts to rectify the issue and negotiate the claim effectively, the insurance company continues to act in a malicious manner, contact Millin & Millin Attorneys immediately. The Texas bad faith insurance lawyers at Millin & Millin Attorneys are aware of the common bad faith and unfair tactics used by insurance companies, and we strive to provide our clients with reliable legal guidance when facing civil litigation challenges - especially against these large business entities.
We know that pursuing a case against a company on your own can be intimidating. That’s why we want to be the support you need and deserve. Call the Millin & Millin Attorneys office to get help securing the coverage and benefits you are owed. We’re proud to work on a contingency fee basis, meaning our attorneys’ fees are paid as a part of your settlement, not out of your pocket.
