Insurance Bad Faith
LOS ANGELES INSURANCE BAD FAITH ATTORNEY
Even though insurance customers have signed written policy agreements with their providers, those are broken by insurers all the time. When this happens, it is called “insurance bad faith” and is in violation of their duty, which is known as the “implied covenant of good faith and fair dealing.” This term is unique to United States law, and it means that the insured person can file against their insurance company for their corrupt acts.
Setareh Law fights for the rights of policyholders – individuals and businesses – in cases involving:
- Denied Homeowners Insurance Claims
- Denied Life Insurance Claims
- Denied Liability Insurance Claims
- Denied Automobile Insurance Claims
COMMON TYPES OF INSURANCE BAD FAITH
Policyholders can not only file a tort claim, but also a breach of contract claim. This occurs quite commonly after fraudulent activity from insurance companies, and nearly 1,500 organizations have been taken off federal programs because of their abuse towards the insured individuals. Insurance companies that are found to be acting in bad faith may also be forced to pay punitive damages for their misconduct.
Examples of bad faith in the insurance industry include:
- Underpayment of claims
- Denying a claim for profit
- Failure to pay claims
- Delaying payment of claims
- Lack of claim investigation
- Canceling claims
These providers commit this illegal activity because it is beneficial to them financially and it seems like an easy way to defraud individuals without them knowing it. The law has been cracking down on insurance companies who are clearly acting in bad faith since they limit or deny claims for their policyholders without justification or proper notification. In the eyes of the law, no insurance company can enter into a contract without the intention of fulfilling their half of the agreement.
DELAYS IN PAYMENT OF LIFE INSURANCE BENEFITS
At times an insurance company won’t deny a life insurance claim, but they won’t pay it either. Instead, the company asks you for information that is difficult, if not impossible, to obtain. Your claim is put on hold while you try to gather the requested information. When you can’t locate the records or information, the insurance company tells you that it cannot pay the claim without it. At other times the insurance company may ask for personal records, such as tax returns, which the company intends to use to try and rescind the deceased’s life insurance coverage rather than pay the life insurance claim. It is not uncommon for a life insurance company to raise a coverage issue after a claim is submitted and leave it to you to prove them wrong before the claim is paid. However, it is an insurance company’s obligation to promptly and reasonably investigate your claim in good faith. If the insurance company ignores that obligation, you should contact an attorney who is experienced in life insurance disputes. With years of experience in life insurance claim disputes, Setareh Law is prepared to defend your rights and those of your deceased loved ones. Don’t let a legitimate life insurance claim go unpaid because you are frustrated by insurance company runarounds.
KNOW YOUR RIGHTS AS A POLICYHOLDER
Once an insurance company enters into a contract with a policyholder, they must provide the coverage that is detailed in the contract, act in good faith, and hold the insured’s interests at the same level as their own. Violating the rights of the insured is clearly illegal, and Setareh Law can help you seek justice for your case. If you enter into an insurance bad faith lawsuit and your claim is proven, then you will be rewarded with restitution for damages and money for attorney fees as well.
SETAREH LAW CAN HELP
Do not let another day pass without seeking legal help from an insurance lawyer. Bad faith is a severe issue that many people may not even realize is affecting them. Proving insurance bad faith can be very difficult, which is why you need an assertive legal advocate in your corner. At Setareh Law, we have experience with cases of this nature, and we can help you determine if you have a valid bad faith case and decide how to go about it. We are prepared to go up against even the largest insurance companies to fight on your behalf.
We offer a free evaluation of your case. We represent insurance policyholders on a contingency-fee basis, which means that our clients owe us nothing unless and until we recover money for them. If you believe your claim may have been handled unfairly, call us today for a free evaluation with our Los Angeles insurance bad faith lawyers.