Before Filing a Lawsuit, Know Different Types of Bad Faith

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What do you mean by bad faith insurance? It is actually a denial of the claim of the insurer’s duty that is expected to practice good faith and fair dealing. This good faith is a covenant and is a part of each contract. There are many ways through which an insurance company can practice bad faith and it has been seen multiple times in Oklahoma City. It is the reason behind that people of the city regularly seek help from the lawyers of Oklahoma City.

To make them understand better, here we will differentiate types of bad faith.

First Party Bad Faith

Here are the acts that can be tagged as first party bad faith.

Inadequate claim processing – Being reluctant to investigate an insurance claim on time to deprive the client of the claim is known as bad faith. Here the company might not verify proof of loss of the insurer, investigate and inspect the claim, fix the coverage and pay or deny the claim.

Improper/inadequate claim investigation – If an insurer intentionally or not fails to investigate a claim can give rise to bad faith. For an example, if an insurer closes a case of a homeowner due to water damage and rejects the claim, it should be called bad faith. Under that circumstance, bad faith insurance lawyer can help you to come out of the mess.

Delaying your payment – Delaying to pay your legitimate claim unethically is bad faith insurance practice. For an example, when your building is insured properly, delaying to pay you for more than one year for a fire break out is unethical.

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Third party bad faith

Here are a few examples of third-party bad faith insurance.

Failure to Settle – When an insurer fails to settle an underlying suit against a justified claim is called bad faith. If the insurer fails to settle the claim when the applicant is within policy limits is bad faith also. Honorable courts have ordered insurers to take interest on insured accounts’ while engaging them in negotiations. If the insurer fails to tell the insured about settled demands, this is also an example of bad faith.

Failure to defend – When an insurer fails to defend insured, it is bad faith. There are many underlying actions by the third party from which insurer should protect insured, otherwise, it is bad faith and if you are a victim of this condition, you can call bad faith insurance lawyer.

Negligent – If your insurer who undertakes your claim is negligent for your defense or claim, this is considered as bad faith.

If you are constantly being rejected for your claim, as a citizen of the United States, you have the right to speak to your bad faith insurance lawyer. If you reside in Oklahoma City, contact The West Law Firm for guidance and suggestion.