Common Examples of Bad Faith Insurance Practices
It is very difficult to have an insurance claim wrongfully denied after a car crash, slip and fall, or any other type of accident. Not only is this situation very frustrating, but it is also illegal. State law stipulates that insurance companies must be transparent with policyholders, and with the claims they handle. Insurance companies do not always follow the law, though. Instead, they undervalue or deny legitimate claims. Below, our personal injury lawyer in Daniel Island outlines the most common examples of bad faith insurance practices.
Not Communicating with You
Insurance companies must notify you about important information regarding your claim. They must also make you aware of decisions in a timely manner. Insurers are not allowed to ignore your questions or fail to tell you of the decisions they have made, and the reasons behind them.
An unjust denial occurs when an insurance claim is denied for a reason that is unjustifiable. Insurance companies deny claims in the hopes that the policyholder will give up. They can then retain more of their profits and protect their bottom line.
Insurance companies may fail to deny, confirm, or pay claims within a reasonable amount of time. If the insurer fails to address a request that has a time limit attached, that is also considered bad faith.
There are times when insurers require certain documentation when they are processing a claim. However, they also request documents or other items that are irrelevant to your case, and that are not outlined in the policy. They do this to delay the process, which is acting illegally in bad faith.
Failing to Conduct a Proper Investigation
Insurance companies may try to use illegal, deceptive, or immoral tactics to investigate your claim. For example, after a car accident the insurance company may hide evidence during an investigation that proves they are liable for paying compensation. Or, an insurance company may deny a claim without conducting any investigation.
Offering Lowball Settlements
Insurance companies have a responsibility to offer the full and fair compensation an injured individual needs after an accident. They often offer lowball settlements that are not enough to fully cover a person’s expenses and other losses after an accident. Insurance companies are required to provide the full value of a claim or it is considered bad faith.
Changes to the Policy
Insurance companies sometimes act in bad faith by canceling or changing a policy. They may then provide another reason for denying the claim.
Our Personal Injury Lawyer in Daniel Island Can Identify Bad Faith
At Fuller Law Firm, our Daniel Island personal injury lawyer can identify if your insurer is acting in bad faith and if so, will take the necessary legal action to make things right. If your insurer has denied or unnecessarily delayed your claim, call us at 843-277-0013 or chat with us online to request a free consultation with our experienced attorney and to learn more about how we can help.