How to Identify a Bad Faith Insurance Claim

Bad faith insurance claims arise when an insurance provider fails to handle a claim in good faith. All insurance providers, whether of disability, life, health, or accident insurance, owe their policyholders a legal duty to act fairly when handling insurance claims. However, insurance companies usually act in bad faith toward the very people they promise to protect. They might do a bad job of communicating, fail to investigate your claim properly, or wrongfully deny your valid claim. 

These actions typically lead to insured individuals not getting the benefits they’re entitled to, such as long-term disability benefits. Fortunately, there are telltale signs that you can watch out for if your insurance provider is acting in bad faith.

Failure to Investigate Your Claim Thoroughly

One of the most common signs that insurers are acting in bad faith is when they fail to investigate a claim properly by: 

• Failing to perform the evaluation of your claim on time
• Delaying the investigation or starting the investigation but not completing the process
• Not reviewing and assessing certain issues
• Failing to contact and communicate with parties relevant to your claim

Denying Your Claim Without a Valid or Clear Reason

Legally, insurance providers have the right to deny claims. A common sign of a bad faith insurance claim is when your insurer does not give you a clear explanation for denying your claim or the reason you were given doesn’t make sense. In such cases, insurers cite a condition of your policy that’s too complicated and hard to understand as justification for the denial. 

Making a Lowball Settlement Offer

Your insurer may refuse to give you the full value of your claim or offer a much lower amount than what your claim is actually worth. 

Using Your Policy to Deliberately Mislead You

Your insurance provider may intentionally misinterpret the law or language of your insurance policy by: 

• Deliberately misrepresenting certain aspects of your policy 
• Utilizing the terms in a way other than they were originally intended
• Using purposely vague or out of date language
• Relying on and citing laws that don’t apply to your policy
• Referring to certain clauses in your contract that don’t apply to your claim

Delaying Your Payment

It’s common for insurance providers to delay payments in an attempt to minimize the amount they have to pay to their policyholders. But your expenses will continue to pile up the longer they don’t pay. Your insurer is hoping that you’ll get desperate enough to accept what they’re offering, even if it’s less than your claim’s real value. Insurers also delay payments because the money they keep will continue earning interest for them and will only stop doing so once they pay you. 

Consult with an Experienced Chicago Bad Faith Insurance Claim Lawyer Today

Remember that you have certain rights and legal options that can protect you if you’ve been victimized by your insurer’s bad faith insurance practices. You should also know that you can contest and appeal a denied insurance claim, and you can hold your insurer legally responsible for bad faith insurance claim denials. Contact Bartolic Law and arrange an appointment with our Chicago bad faith insurance claim lawyer by calling 312-815-1153 or contacting us online.