Below is brief summary discussing denied insurance claims in Texas.
1
What types of insurance policies can involve denied insurance claims?
Examples include auto insurance; homeowners insurance; renter's insurance; health insurance; disability policies, commercial vehicle insurance; and commercial property insurance.
2
What is a "bad faith" claim?
A bad faith claim is when an insurance company refuses to pay your claim or pay the full amount of the claim. The law requires insurance companies to deal with people or businesses in "good faith" and when they violate this obligation a "bad faith" claim may be asserted.
3
What are examples of bad faith claims?
Examples of bad faith claims include the following: insurance company fails to communicate with you about your claim; makes a low offer of payment not supported by facts or documents; fails to investigate your claim or promptly pay the claim; fails to give a reasonable explanation why a claim is denied; refuses to defend a policyholder for a covered claim; and fails to pay a portion of the claim that is not disputed.
4
If I am in an accident, can I file a bad faith claim against the insurance company for other person?
No. Bad faith claims can only be asserted if you are the policyholder. This is known as a first party claim. If another person causes the accident, you have to sue the other person or business that caused the accident.
5
What should I do if a insurance claim is denied?
You should immediately contact an attorney and report to the Texas Dept. of Insurance at www.tdi.state.tx.us. You should save a all communications to the insurance company and keep any insurance policy that may apply to the claim.
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