6 Facts About Businesses Everyone Thinks Are True

Things To Know About Insurance Bad Faith

People are relying on insurance companies to be there when they need it 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 be needing their help soon when events happen.

Sadly, some other insurance companies are not complying to the contract they are about to do when they need the help the most. They are looking for excuses they can possibly think of to not be liable of any responsibility they opt to do to their contracted customers. When these insurance companies are trying to excuse from the said responsibilities they are requires to perform, 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 most countries such as United States, insurance companies are bound a duty of good faith and fair dealing to those they insure. It is known duty of every insurance companies to do such performance to their customers. When an insurance company failed to do so, they can be sued with a breach of contract claim and a negligence claim. Aside from the fact that they did not uphold their end of the bargain, insurance companies can be sued for civil wrong doings.

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.

The kinds of insurance carriers that can be held liable when acted in bad faith are health insurance, auto insurance, life insurance and long term disability insurance. Insurance carriers are expected to act in good faith and honor everything in the contract that are agreed upon with their policy holders. Trying to reason out to be excuse of their duty is acting in bad faith and ca be sued because of this.

An insurance company that acts in bad faith is liable to pay for compensation for the emotional and financial distress it cause. There is a need for a high quality lawyer to calculate the damages for you. This lawyer will help you bring the case to the court and will guide you with everything the insurance company is opt to give you.

It is important to take action when you read the policy and feel like you are not given then coverage that should be given to you as a policy holder. Look for a lawyer around and fight for your right.

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