Can you sue insurance companies for not paying out legitimate claims?
What is insurance bad faith claim?
When you file an insurance claim with an insurance company, by law, in any state, that company owes you a duty to act in good faith. Bad faith claims and lawsuits may stem from one or more of a number of actions or inactions by the insurance company from denial of coverage to failure to negotiate a settlement.
Frequently Asked Questions About Insurance Bad Faith
What can I do if my claim was denied because the insurance adjuster says that the damage was pre-existing?
If your claim was denied because the insurance adjuster says the claim was pre-existing you should speak to an expert in the area and get a letter stating the damage was not pre-existing. That will put pressure on the insurance company. Usually this is a mechanic on a car crash case but can be a …
A business can sue an insurance company for denying a valid claim. This happens everyday in the courthouses of Kentucky and the rest of the United States. A corporation can file a lawsuit against the insurance company and seek to hold the coverage valid.
If an insurance adjuster missed things on a report you should write a letter asking for an explanation of why things were missed. Keep the letter short, sweet, and to the point. That should put pressure on the insurance company because a document exists. Do not have further verbal communication with the insurance company. If …
You can sue your insurance company for taking a very long time to process a claim. Whether or not you are successful will depend on the facts and circumstances. If liability is clear the investigation shouldn’t take a long time. If there are a bunch of different entities and complicated facts then the investigation is …
My insurance company failed to settle a third-party claim against me and now I am being personally sued. Can I sue my insurance company for bad faith?
Your insurance company has a duty to act in your best interests. They are obligated to defend you in a lawsuit. Whether or not they committed bad faith is a factual determination. For example, if you only had minimum limits and caused a really bad injury the insurance company should have tendered the limits. If …
You can sue an insurance company for failing to defend you in a lawsuit. This is accomplished by the filing of a declaratory action (dec action). A lawyer can ask a judge to determine whether or not you were covered. If the judge determines that coverage was valid the insurance company is obligated to defend …