Insurance Bad Faith & How It Affects You
By James L. Magazine
Lets first start off by explaining what bad faith is. In the state of florida an insurance company has a duty to protect its insured and settle a claim within its insured policy limits when it knew or should have known that the claim could be settled within the same. The same is true when making a claim under your own UM policy for benefits. Your insurance company has a fiduciary obligation to settle the claim within your policy.
On first party claims when your insurance company fails to tender your policy limits your lawyer must file a CRN (civil remedies notice) with the insurance commissioner of the state of florida advising that you believe your insurance company is not acting in good faith. The law then requires that your insurance company be given 60 days to remedy. If they do not remedy in 60 days they may be subject to bad faith.
In a 3rd party action once the insurance company has been given reasonable opportunity to resolve the case within the policy limits and they refuse, they have now exposed there insureds to an excess judgment.
The Florida laws concerning bad faith are the consumers only protection against insurance companies. It is the only thing that gives the consumer a remedy when the insurance company acts contrary to the interest of their insured. Without pro consumer bad faith laws insurance companies would never settle cases fairly in fact, florida consumers would be at a great financial risk as judgments would mount against individuals and businesses because there insurance companies were allowed to act in the best interest of the insurance company and not the insured.
At the law offices of Lucas, Green, & Magazine, we have represented countless bad faith claims. If you have been injured or feel your insurance company has committed bad faith please contact me at (727) 849-5353, or firstname.lastname@example.org. Please also feel free to visit Lucas, Green, & Magazine online at http://www.lgmlawgroup.com.