Answering All Questions You Have About Bad Faith Insurance
Bad faith insurance is the legal jargon for when an insurance company reneges on its responsibility toward the policyholder. The insurer can act in bad faith by either straight out refusing to pay the client’s rightful compensation or taking an abysmally long time to process and investigate the claim.
Often, insurance companies also misrepresent the language of the contract and find loopholes to avoid paying the compensation to the client. Other times, they may fail to inform the policyholder of the exclusions prior to selling them the insurance. Both of these instances are examples of an insurance company acting in bad faith.
When is Delay Considered Bad Faith Insurance?
Any respectable insurance company is required to uphold the best interests of its policyholders. This includes conducting investigations and expediting claim procedures within a reasonable period of time in addition to paying out benefits.
Unfortunately, some insurance companies stray from their obligations and try obtaining profits by paying less in claims and sometimes outright denying the compensation.
Under such circumstances, you as a policyholder have the right to hire a bad faith insurance lawyer and take your case to the court.
But first, we discuss some factors which can affect the window of the claim procedure -
● The presence of witnesses and whether or not they are available to narrate their account to the insurance company.
● The severity of the injury and/or property damage. The more serious the damages are, (aka the more the compensation is) the longer will it take the insurer to process the claim.
● Availability of records and legal documents.
● Determining the party at fault is another important factor that decides the time taken. Additionally, if the policyholder is clear of fault, they will receive greater compensation than if they too were partially at fault.
● Complicated investigations require longer to process the insurance claims.
How to Fight Bad Faith Insurance?
Oklahoma State Law has strict provisions in place for its residents to fight against malicious intent by insurers.
The company is required to pay a basic damage control to compensate the victim when their claim has been denied as an act of bad faith. This amount is above and beyond the amount payable under the original claim. The damage control covers attorney fees, salary deductions for missed work, and other out-of-pocket expenses.
In some cases, the court may punish the insurance company’s incompetence and egregious actions with punitive damages. This discourages them from future run-ins with bad faith cases. If the bad faith insurance lawyers’ inquiry reveals that the insurer simply erred in judgment and has not, after all, acted in bad faith, they will only be asked to pay the existing compensation.
Seeking Help from the Right Place
The West Law Firm can help you out of a tight spot with your insurance providers. Our bad faith insurance lawyers are one of the best in the whole of Oklahoma. Your case will be handled on a contingency fee basis, meaning you don’t pay a cent until we have recovered the rightful compensation for you. The West Law Firm also offers completely free initial consultations to all our clients. Reach out to us via the contact us section at the bottom of our homepage or ring us at 405-275-0040.
** Disclaimer: The above article does not imply a relationship between attorney and client, nor is it legal advice.