It happens more often than people may realize. A person is injured and during the negotiations with the insurance company, they get a feeling that they are not being given the fair opportunity to receive the settlement they truly deserve. Bad faith insurance claims settlement practices are when an insurance company or their adjuster is not negotiating in good faith. If you feel the insurance negotiations have turned into a bad faith situation, it is important that you speak with your attorney or hire an attorney to assist you with the negotiation process.
Bad Faith Insurance Laws
Insurance companies are required by law to act in a certain way during claims negotiations. They are not allowed to use poor tactics to lower a person’s claim. While referred to as “Bad Faith” insurance laws, these laws are actually part of the Unfair or Deceptive Insurance Claims Practices laws as they are interpreted by the state. When an insurer is in direct violation of those laws, they can be held accountable for their actions.
Examples of Bad Faith
For some, the negotiation process is strenuous – which makes it hard to determine if an insurer’s actions are bad faith or just part of the process. Some examples of an insurer acting in bad faith include:
- The insurer delays, discounts, or denies payments without any reasonable basis for such delay or denial.
- The insurer fails to acknowledge or reply promptly upon notification of claims.
- The insurer fails to do a proper and prompt investigation into the reasonable liability and damages based on their findings.
- The insurer attempts to settle claims based on alterations made to the party’s insurance without notice, knowledge, or consent.
- The insurer attempts to settle a claim for less than the amount a reasonable person would expect to receive or attempts to substantially diminish the amount in order to initiate litigation instead.
- The insurer fails to make a full and satisfactory payment of a claim.
- The company withholds, misinterprets, or misconstrues accident claims or fails to inform the parties of their findings.
- The company uses wrongful threats in order to not pay their claims.
- The insurer tells the individual that they should not hire an attorney or that they do not need an attorney to review their settlement.
- The company’s attorneys treat the individual unfairly or use bad faith practices.
- The insurer uses inaccurate or wrongful information of a legal nature to attempt to diminish, deny, or delay their payments to the injured party.
- The company is not forthcoming about facts regarding coverage.
- The company uses undue persecution, employs victimizing tactics, or attempts to threaten or intimidate the injured victim.
Speak with an Attorney Before Negotiating a Settlement
To avoid bad faith practices, which do happen, it is in your best interest to speak with an attorney regarding your claim. An attorney can help negotiate with insurance companies and ensure they use good faith when negotiating their settlement. Contact Gladstein Law Firm today for a free consultation, or fill out an online contact form with your questions.
