Individuals invest substantial amounts of money over a long period of time in exchange for safeguarding their valuable assets.
An insurance policy is actually a binding contract between two parties: the insurer (the insurance company) and the insured (or the policy holder). Both sides are required to act in good faith and have the following rights:
The insured persons have the right to be treated fairly.
The insurer has the right to deny a policy holder’s claim in case they don’t respect the terms of the contract, or if the claim is fraudulent.
By purchasing any type of insurance policy (life insurance, homeowners insurance, etc.) the policy holder gains the right to receive full benefits of the policy in case of a covered claim.
Insurance companies sometimes act in “bad faith" in order to increase their profits by not paying on claims to policyholders as they have to. “Bad faith" refers to an attempt at illegal gain on behalf of the insurer at the expense of the insured.
When it comes to insurance coverage, if the insurance company refuses to pay or delays the payment, you may have a “bad faith" insurance claim.
Here are the most common “bad faith" insurer indicators that may indicate you need to contact a lawyer
The key facts you have to remember when dealing with a “bad faith" insurance claim are: