Insurance Bad Faith: A Quick Guide
People are depending on insurance companies because they will be needing them when they need the help the most. It may be a car insurance of a car accident or a medical insurance for a serious illness or injury. People do not pay for insurance premiums regularly without any agenda after all. They do this because they know that they will help them when they will be needing an aid for future unthinkable events to happen.
But it is sad to think that insurance companies are not doing their duty when the sudden accident happens. They are looking for loopholes for them not to be bound on the certain due responsibility, When this insurance companies try to wriggle their way out from everything associated in the contract, they are acting in bad faith.
Legally speaking, insurance bad faith is “describes a tort claim that an insured person may have against an insurance company for its bad acts.” In United Sates, insurance companies are expected to be in good faith and fair in dealing to the people they are in contract with. It is an implied duty every time an individual enters into a legal insurance contract with a company. When an insurance company does not comply with this duty, they can be sued with tor claim and breach of contract claim. Insurance companies can be sued to civil wrong doings aside from the fact that they not uphold their end of the bargain, in other words.
The insurance will be complied to pay for damages because of bad faith aside from the original responsibility they opt to perform, in the end.
Health insurance, auto insurance, life insurance and long term disability insurance are the types of insurance carriers that can be held liable when acted in bad faith. Every type of insurance carrier has the duty to its policy holders to honor their agreements and to act in good faith. Trying to find a loophole to be out in this responsibility is acting in bad faith and can be sued of it.
An insurance company that acts in bad faith is liable to pay for compensation for the emotional and financial distress it cause. You will be needing a good lawyer to calculate the damages for you. This lawyer will help you with everything about the responsibility of the insurance company and to bring the case to court if needed.
Take an immediate action if you look on the policy and realized that you are not given with a coverage you should receive. Look for a lawyer around and fight for your right.
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