Bad Faith Insurance : Strategies for Establishing Your Case with Integrity

Confronting unfair treatment from your insurance provider? If they have mishandled your claim, you might be eligible to pursue a bad faith case.

However, demonstrating bad faith goes beyond mere feelings of injustice.

This guide will help you recognize signs of bad faith practices and provide insights on constructing a robust case to ensure accountability.

 

What Constitutes Bad Faith

Before we dive into proving a dishonest insurance claim, let’s understand what “bad faith” means.

In Kentucky, the law (Unfair Claims Settlement Practices Act) says insurance companies must treat all claims fairly.

If they don’t, there’s a good chance they’re acting in bad faith.

Here are some examples of possible bad-faith actions:

1. Giving the wrong information about important facts in a claim.
2. Twisting the words in an insurance policy to mislead.
3. Not thoroughly and quickly looking into a claim for benefits.
4. Refusing to pay the full benefits to a rightful policyholder or claimant.
5. Dragging out or refusing to settle a clear liability claim.
6. Holding back payment without a good reason or explanation.
7. Using pressure to make someone file a lawsuit when the liability is clear.

 

 

How Do I Prove A Bad Faith Claim?

People often ask us, ‘How can I prove I have a bad faith insurance claim?

To get fair compensation in such a claim, you need to show that the insurance company treated your claim unfairly.

It’s your job as the person claiming to prove the company’s wrongdoing, which can be a bit tricky.

Just being denied a claim doesn’t automatically mean it’s bad faith.

That’s why it’s crucial to talk to a lawyer before filing.

So, how do you prove bad faith in court? What evidence do you need?

The proof depends on your specific situation, but some important pieces of evidence include:

• The insurance company’s policy
• Corporate policies of the insurance company
• Copies of letters sent to you
• The insurance company’s claim file
• Testimony from experts who handle insurance claims

 

When dealing with an insurance company, keep detailed records of your communications.

Save all letters and emails.

Take notes on when you called the adjuster and what was said.

Bad faith claims often involve delays and misinformation, so keeping track of your communication can be useful.

Ask the adjuster to send written confirmation of your interactions and what they said, even if they claim they don’t usually do that.

Make a note that you asked.

Damages In A  Bad Faith Case

If your insurance company treats you unfairly, and you can prove it, you might get money to make up for the trouble.

The amount depends on the rules in your area, how the insurance company messed up, and the losses you had.

If the insurance company acts badly, you could get money for:

1. The real money you lost because they didn’t handle your claim properly.
2. The money you spent on lawyers and court because of their mistakes.
3. Extra money to punish the insurance company for doing something wrong.
4. Fines from laws that say insurance companies can’t treat people unfairly.
5. Extra money because they held onto your insurance money when they shouldn’t have.
6. Money for feeling upset because of what the insurance company did.

 

 

If you think your insurance company treated you badly, talk to a lawyer who knows about these things.

They can help you figure out if you should get money for what happened.

First vs. Third-Party Bad Faith Claims

In some places, you can only sue your own insurance company for bad-faith insurance things.

But in others, you can sue both your own insurance company and someone else’s.

When it’s about your own insurance company (first-party), it might be about damage to your car, home, health, life, or disability.

You just tell your insurance company about it.

If it’s with someone else’s insurance company (third party), it’s usually about who caused an accident.

If their insurance company acts unfairly, you can claim compensation.

Frequently Asked Questions (FAQs)

When can an insurance company be held responsible for bad behavior?

If the company doesn’t treat you fairly and act honestly when handling your claim, they might be in trouble for bad behavior.

For instance, if they say ‘no’ to your claim without a good reason, don’t bother checking the facts, or offer you way too little money on purpose, they could be guilty of bad behavior.

What is a bad-faith denial of a claim?

It means they’re saying no to covering damages without a valid reason.

This is known as a bad faith denial.

The policyholder can take legal action and seek compensation for losses resulting from this unjust denial.

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