Filing Bad Faith Insurance Claim- What to Do?

You can purchase protection and peace of mind when you consider buying an insurance policy. It is important to know if a covered event occurs that your insurance company will be there. If a claim is deliberately refused by an insurer for unfair reasons, or if you do not conduct a proper investigation, you can lead to wrongdoing.

It can cause major problems and you don't have to take action, no matter what the bad faith insurance takes. The next steps will lead you to file an insurance claim for bad faith. Do not forget to talk to a bad-faith insurance lawyer.

Stage 1: Check Your Contract of Insurance

A policy of insurance will need you to contact an insurer. You must know if your contract has been breached before you can file a bad-faith lawsuit. Begin with a complete copy of your review contract. Before you submit your claim, make sure it is dated. Whenever possible, a copy of your policy should be obtained before your claim is filed. Make sure your assertion is covered by your contract terms and conditions.

Step 2: Keep Your Claim Logs

You must prove the validity and compliance with the terms of your original claim. Collect all your documents and proof. It may include photos supplied to the insurance company, reports, receipts and insurance company estimates and correspondence. Call or consult with the insurance company to complete a log. Note the date, the participants and what was discussed in general.

Step 3: Refusal of Claim Document

If you refuse your claim, ask the insurance company supervisor to check the claim and refuse it. If the refusal does not reverse it, please contact the insurance policy office of your state which is a government office responsible for reviewing the insurance claims contested. Your insurer may reconsider its denial of coverage during the review process. Again, document all your interactions and denial statements with the insurance company.

Step 4: Make an End Request

You must show that you have tried to settle your claim before filing a lawsuit. Send a letter of request in writing that details your request. Receive proof of mailing via a return receipt. The insurer must pay that claim between 15 and 60 days after you request it. Advise your insurance company if the claim is not paid appropriately and in good time, to take a claim for bad faith. If the insurer does not refuse to pay the claim at this time, you cannot file a bad faith complaint before the insurer is able to reply. However, you will need a bad faith insurance lawyer to make such a demand.

Step 5: Complaint Your State Insurance Department

Each State has an insurance department that regulates and manages reimbursement insurance companies. You may file a complaint with your state's insurance department if you have not received a timely settlement or feel your claim to have been mismanaged. The services offered vary by state, but most try to resolve your dispute by mediation. Your insurance department of your state may file a lawsuit and a complaint. However, the ability of the State to seek a resolution with mediation would be constrained.

Step 6: Bad Faith Law Proceedings

It is not a simple task to lodge a bad faith lawsuit against a policyholder. The decision to file in state or federal court will need to be made. Moreover, you need to choose a forum with competence over the insurance company defendant. Your complaint will probably also cover other claims like fraud, contract breach and negligence. You should request compensation for the bad faith of the insurance company under the policy and compensation. When you decide to settle the claim, the insurance company can continue to prosecute you for bad confidence.

Work on Your Insurance Claims with a Lawyer

Each State has legislation that protects consumers from insurers' bath religious tactics. You can feel like a battle uphill if you go for a claim alone. An experienced lawyer will help you withstand a company with bad faith that has compromised your claim. Call an insurance lawyer from The West Lawn Firm to learn more about your state's bad faith claim process.

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