FAQs on Bad Faith Insurance

While doing research and deciding on the right insurance for you, you may get to the know the term ‘bad faith insurance’. This is the worse situation an insured person can face from any fraudulent company in the name of insurance. There is a law against bad faith insurance and you can file a claim under that law if anything unpleasant happens to you. If this becomes the case, you may need to contact an efficient bad faith insurance lawyer to fight the case against the fraudulent company to get you the claim resolved as soon as possible.

Hopefully, the answers to these frequently asked questions will help you understand the whole concept better:

What is bad faith insurance?

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To define this legally, it can be said that insurance policies are simple contracts between the insurer and the insured. They need to abide by the contract terms under state and federal law. Any breach of contract may make them liable under the law and the consequences can be compensation for the conned party. If an insurance company does anything beyond the contract and disallows a claim on no valid ground, they can be tagged as a bad faith insurance provider.

Who can claim it?

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The insured person wouldn’t get the claimed amount after an accident or similar incident if the company is fraudulent. There can be two types of circumstances. Often companies try to make money by denying a valid claim of an insured person. They also try to trick policy holders with vague language in the policy so coverage areas become unclear. On the other hand, the insurance may fail to clear your claim. In this case, you could be asked for additional documents just to delay the process. They can be negligent in investigating and responding to the filed claim. In this situation, you are eligible to prove that the benefits of the policy are due, and the delaying is unreasonable. Your bad faith insurance lawyer can make a successful plea for you in this case.

What is the compensation?

Recovering from the claim of a bad faith insurance company, you can get contract damages or the money under the policy terms, tortious damages including economic and non-economic damage and maybe, punitive damage to deter further similar conduct.

You may have more queries regarding bad faith insurance; take your time to ask for them to a professional bad faith insurance lawyer from The West Law Firm. Proper guidance and handling of the case in the best way is what you can expect from them.

** Disclaimer: The above article does not imply a relationship between attorney and client, nor is it legal advice.