What To Do if Your Insurance Claim Is Denied in Bad Faith
Everyday, policyholders file claims with their insurance company — and many of these claims are eventually denied.
When your insurance company doesn’t properly compensate you for the unpredictabilities of life, bad faith insurance lawyers can step in to give you a helping hand. Experienced law firm, Millin and Millin, wants to take the time to help you understand when a claim denial is in bad faith and how they can help.
We hope this article serves as basic instructions on what to do when you are denied in bad faith. You can also reach out for a FREE evaluation if you have more questions!
A Guide on How To Approach an Insurer Acting in Bad Faith
Above all, you must prove that you’ve tried everything within reason to work with the insurance company before resorting to legal action. Let’s review what this entails in a step-by-step guide:
- ⦿ Keep Clean Records and Review Your Contract – One of the most important things to do after you file a claim is to maintain a log of all exchanges between yourself and the insurance company. It’s critical to be detail-oriented and note the names of who you spoke with, the dates of all interactions, and to maintain all necessary documents. Also, while it may seem like common sense, it’s important to review your contract, especially focusing on the fine print.
- ⦿ Appeal Your Claim’s Denial – If you receive a note that states, “Insurance Claim Denied,” you should request a supervisor review the denial through an appeal. Note that you may have to go through a few levels of the insurance company hierarchy to get adequate assistance.
- ⦿ Send a Demand Letter – This letter serves to notify your insurance company that you refuse to accept the denial of your claim. Additionally, it advises them that if they continue to deny your claim in bad faith, you will seek legal counsel.
- ⦿ Issue a Complaint – If you’ve tried all of the above, your last option before you get help from bad faith insurance lawyers is to file a complaint with your state’s department that reviews insurance claims. A virtual consumer protection agency, the National Association of Insurance Commissioners (NAIC) can help you find the contact info for this particular department in your state.
If you still have no luck, it might be time to talk to the professionals and file a bad faith insurance lawsuit.
How To Handle Denials in Bad Faith
We here at Millin and Millin hope that this guide will help you if you find yourself in a situation where your insurance claim has been denied in bad faith. When something goes wrong, it’s important to always be informed in regards to your particular circumstances. If you’ve followed the above process and still need help, the bad faith insurance lawyers will certainly review your case.