What is a Bad Faith Insurance Claim?
A bad faith insurance claim is when an insurance provider is being unfair or unjust in processing an insurance claim, after they collect their money owed month after month. If the insurance provider is engaging in bad faith, your compensation can be significantly reduced even for valid claims.
There are many behaviors that can be considered as bad faith. Any misconduct or wrongdoing in an effort to reduce their payout or misguide the insurance policyholder can be considered bad faith on the part of the insurance company.
For example, if the insurance provider denies a claim without proper justification on something that should clearly be covered or if they pressure the policyholder to accept an unreasonably low settlement, these actions could be considered bad faith.
Other examples of bad faith insurance claims include refusal by the insurance provider to investigate the case, delaying the investigation process for no reason, or rejecting evidence that is clearly relevant to the case.
While insurance representatives are trained to reduce their payout, it is illegal for them to engage in bad faith tactics. If you believe you are a victim of a bad faith insurance claim, you have the right to fight against the insurance company through a lawsuit.
