Doing Insurance The Right Way

Insurance Bad Faith: A Quick Guide

People are depending on insurance companies because they will be needing them when they need the help the most. It may be a car insurance for a car accident or a medical insurance for a serious injury. After all, people do not pay for insurance premiums every now and then because they feel like it. They do this because they know that they will help them when they will be needing an aid for future unthinkable events to happen.

But sadly, many companies are not doing their responsibility when the unthinkable events happen. They are looking for loopholes for them not to be bound on the certain due responsibility, When these insurance companies are trying to excuse from the said responsibilities they are requires to perform, they are acting in bad faith.

Legally speaking, insurance bad faith is “describes a tort claim that an insured person may have against an insurance company for its bad acts.” In United Sates, insurance companies are expected to be in good faith and fair in dealing to the people they are in contract with. It is an expected duty every time an insurance company has entered into a contract with an individual. When an insurance company failed to do so, they can be sued with a breach of contract claim and a negligence claim. In other words, insurance companies can be sued for civil wrong doings aside from the duty they did not uphold on doing.

In the end, they will be liable to pay for damages aside from the original policy they need to render to their customer.

Health insurance, auto insurance, life insurance and long term disability insurance are the kinds of insurance carriers that insurance companies can be held liable when acted in bad faith. Every type of insurance carrier has the duty to its policy holders to honor their agreements and to act in good faith. Trying to find a loophole to be out in this responsibility is acting in bad faith and can be sued of it.

An insurance company that acts in bad faith is liable to pay for compensation for the emotional and financial distress it cause. You will be needing a good lawyer to calculate the damages for you. This lawyer will help you with everything the insurance company is responsible to give and take the case to court if needed.

If you read the policy and feel like your insurance company is not giving the coverage you truly deserve, take an action. Do not leave this thing behind and look for a qualified lawyer for you.

Researched here: Full Report