| Common questions and answers regarding insurance | | | | due, are misinformed about their benefits, or simply |
| claims: | | | | use fraudulent information to get benefits. |
| How do you prove an insurance company acted in | | | | Will my insurance rates increase if I follow through |
| bad faith? | | | | with a lawsuit? |
| Your attorney will attempt to show the court that | | | | If an insurer attempts to increase your rates or drop |
| the insurer failed to meet the contractual obligations | | | | you from a policy, they may find themselves |
| without just cause. Your attorney will show that a | | | | involved in further legal action as this is an illegal |
| claim was unfairly denied, or that you were unfairly | | | | practice. |
| dropped from the policy contrary to the provisions in | | | | What rights do I have as an insured party? |
| the signed contract. It can be shown that the insurer | | | | While certain rights of fairness are granted by law, |
| acted unreasonably by demonstrating what a | | | | the legal terms of your agreement will be stated in |
| reasonable insurer would do in a similar situation. | | | | your contract. There are provisions of the law that |
| What are some examples of "bad faith" on the part | | | | protect insured parties from fraudulent or unfair |
| of the insurer? | | | | terms disguised within contractual language. However, |
| You may have a claim if your insurer unreasonably | | | | if an insurer is straightforward and you agree to fair |
| denies or delays a valid claim, fails to promptly and | | | | terms, you will be obligated to uphold your end of |
| thoroughly investigate a claim, interprets contractual | | | | the agreement. For example, most contracts obligate |
| wording in an unreasonably narrow fashion to the | | | | the insured to pay a monthly premium. |
| insured's detriment, or refuses to settle a case or | | | | If you default on your payments, you are subject to |
| reimburse an insured for the entirety of the insured's | | | | denial of your benefits or other penalties based on |
| loss with no adequate justification. | | | | how your contract is written. If your insurance |
| If an insurance claim is denied, does this automatically | | | | company refuses to make good on its obligations, |
| constitute bad faith? | | | | you have a right to hire an attorney to help ensure |
| No. There are instances where insurance policy | | | | that the terms are met. |
| holders may attempt to get settlements that are not | | | | |