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.
One of the most common signs that insurers are acting in bad faith is when they fail to investigate a claim properly by:
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.
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.
Your insurance provider may intentionally misinterpret the law or language of your insurance policy by:
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.
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.