In most cases before opting to file a personal injury lawsuit a personal injury claim is processed by insurance carriers for negotiating settlements when certain incidents occur. As a result insurance companies are legally required to act in good faith to the people that purchase the policies as well as third-party claimants in such situations. According to law.com legal dictionary good faith is defined as, “Honest intent to act without taking an unfair advantage over another person or to fulfill a promise to act, even when some legal technicality is not fulfilled. The term is applied to all kinds of transactions.” Therefore, good faith in all circumstances means an honest and fair dealing with issues that arise. Unfair dealings and fraud are not committed. When an individual or company acts unfairly and fraudulently this is in bad faith. One article notes that.
Unfair and dishonest dealings by an insurance carrier may be observed in various manners. It may be in the denial of a payment or discounting the payment that should be provided based on a valid claim without any possible reasonable basis. Another action done in bad faith could be where a settlement offer is far too low in respect of the supported facts with regards to the incident. Failing to confirm or deny coverage of certain claims in the necessary time frame should not occur and as a result is an act of bad faith. Cause for concern and problems is when the company ignores calls, written letters and emails submitted about a valid claim that needs payment. It has been noted that one tactic used by insurance companies to cause problems is by way of rude, intimidating and abusive words or actions against the policy holder.
One attorney provided the following advice as to how to deal with bad faith tactics, “It is vital to document all interactions with the claims adjuster and other staff at the company. This includes any and all communication through the telephone, in emails, written letters and any other matters. It is important to make a detailed description recording if bad faith is indicated. If the claims adjuster is the one acting in bad faith a written document should be requested for the reasons of the completed actions and tasks. If the adjuster denies this then a formal request should be sent to the insurance carrier by way of certified mail with a return receipt requested. The point is to have proof of the bad faith in order to be able to make the company accountable.”
If you can show that the insurance company has acted in bad faith you must file a report with the insurance board of the state that you live in. Every state has an insurance board and contact information may be found online, through a lawyer or by directory assistance.
Note that the state insurance board cannot force the insurance company to pay or negotiate a settlement for a claim. Therefore, enlist the services of an expert lawyer in personal injury case law to represent your interests.
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