Insurance Bad Faith
Under the assumption that you pay your premiums, your insurance provider is obligated to cover full benefits regularly, and relative to the terms of your policy. Insurance firms pay claims with great faith-willingly, promptly and correctly; this is the definition of Insurance Law. It is illegal to commit bad faith insurance fraud by willingly discounting, delaying or denying transaction of claims. In the US, insurance companies are bound by a “covenant of good faith and fair dealing” in treating their policyholders, which means that the insurance company is under an obligation to pay a legitimate claim. If an insurer breaches this covenant, it is acting in bad faith.This obligation for the insurance company to pay reasonable claims in accordance with the insurance policy is called good faith. If your provider tries to delay payment unreasonably, underpay, or deny a legitimate claim, they are acting in bad faith.
Examples of bad faith include:
- Providers trying to save money by denying or underpaying legitimate claims by policyholders.
- Failing to provide a written explanation of why your claim was denied
- Withholding benefits guaranteed to you under your policy
- Refusing to defend a lawsuit against you
- Refusing to agree to a reasonable settlement offer in a lawsuit against you
There is no clear definition of an insurance company’s “bad faith.” If you are an insurance policy-holder and are not receiving benefits to which you feel are entitled, you should discuss your case with an attorney with specific knowledge of insurance litigation about the possibility of a “bad-faith” insurance lawsuit. With top notch litigation skills and in depth knowledge of the insurance industry, Mr. Naziri represents businesses, individuals and families that have been victims of bad faith tactics by insurance carriers. Contact Naziri Law Firm today at (818)-888-6675 or TOLL FREE at (888)-9-GOT-LAW for a free case evaluation.