Insurance Bad Faith
Insurance Bad Faith
Insurance bad faith refers to the act of an insurance company engaging in dishonest or unfair practices when handling an insurance claim. It occurs when an insurer fails to fulfill its contractual duties, such as unreasonably denying a valid claim, undervaluing a claim, delaying claim processing without justification, or failing to provide a reasonable explanation for claim denials. Insurance bad faith can occur in various types of insurance policies, including auto insurance, homeowners' insurance, health insurance, and more.
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- Unreasonably delaying its response to a claim.
- Denying a claim without a reasonable basis for doing so.
- Intentionally and incorrectly reading the insurance policy to find requirements that do not exist.
- Stalling the claim, either to enhance negotiating position in a settlement or to get the policyholder to drop their claim entirely.
- Failing to perform a timely investigation of a claim.
Frequently Asked Questions
When you sign a contract with an insurance company for insurance, you promise to pay them periodic premiums. The insurance company promises to treat you fairly as their customer. If the insurance does not treat you fairly that can be “Insurance bad faith.” Delaying the claims process, making lowball offers, or improperly denying your claim are some examples of bad faith, but there are many more. Insurance companies can and often will try to take advantage of their customers, and if you have any doubts about whether the insurance company is treating you unfairly you should reach out to an experienced lawyer.
Colorado Revised Statute §10-3-1115 and §10-3-1116 provide additional penalties against the insurance company above and beyond the value of your personal injury claim.
Dealing with delays from insurance companies can be frustrating, but there are several steps you can take to address the issue and hopefully expedite your case. Here's a guide on what you can do:
Contact your insurance company: Start by reaching out to your insurance company directly. Speak with a representative to inquire about the reason for the delay and ask for an estimated timeline for resolution. Keep notes of the date, time, and details of your conversation.
Review your policy: Familiarize yourself with your insurance policy to understand your rights and coverage. Look for any provisions related to claim processing times and procedures.
Document everything: Keep a detailed record of all communication with the insurance company including phone calls, emails, and letters. Note the names and job titles of the people you speak with, as well as any relevant reference or claim numbers.
File a formal complaint: If the delays continue and you feel your insurance company is not handling your case appropriately, consider filing a formal complaint with the insurance company's customer service department. Many companies have a dedicated process for handling complaints.
Seek legal advice: Contact us to find the best solution to your problem. We can review your case and take the best legal action against the insurance company.
Proving that an insurance company acted in bad faith can be challenging, as it often requires providing evidence that goes beyond simple delays or denials. Bad faith refers to situations where an insurance company unreasonably and intentionally withholds benefits or fails to fulfill its contractual obligations to the policyholder.
In Colorado, yes, you can have a claim against your insurance company even if you have dropped them as your insurance. All that matters is that the insurance was in force on the date and time of the wreck.