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What is insurance bad faith?

California law states that in a contract between an insurer and policyholder there is a clause called “implied covenant of good faith and fair dealing”. In layman’s terms, this means the company must act in good faith throughout the duration of the contract and cannot interfere with a policyholders’ rights. Policyholders have rights to:

  • Receiving coverage for covered risks
  • A proper investigation into a liability for an injury
  • Using good faith to settle all claims
  • Defending the insurer against claims by third parties

When an insurance company fails to uphold these rights, it can be considered a breach of the covenant of good faith and fair dealing. This means a policyholder can instill the help of a Los Angeles unfair insurance claims attorney to file a legal claim for insurance bad faith.

First party claims

A first-party claim is one brought to an insurance company that is in response to health, property, and personal insurance coverage. These claims are the most common and involve the insurance company failing to properly investigate a claim, unreasonably denying a claim, only paying part of a claim, intentionally delaying a claim, and offering a low settlement amount.

Third-party claims

Your insurer has a duty to protect your policy against third-party claims, this is when a person sues you for damages that you are suspected of causing. There are two main signs of committing bad faith practices:

  • Non-payment of legal defense costs
  • Failing to defend you against a third party claim

Contact a Los Angeles unfair insurance claims attorney to discuss your legal options.

Protecting You Against Insurance Bad Faith

You have insurance for one reason — to compensate you and your family in case of an accident, injury, or other catastrophic events. Unfortunately, insurance companies are not on your side. When insurance companies wrongfully deny your claim or deny important information about your claim, the Law Offices of Howard Craig Kornberg can help. We stand up to insurance companies and strive to get you the compensation you need.

Common Insurance Bad Faith Claims

After years of handling cases just like yours, the Los Angeles unfair insurance claims attorney at the Law Offices of Howard Craig Kornberg has seen several bad faith insurance claims. the most common acts that can be considered bad faith are:

  • Failing to conduct a full, fair, and prompt investigation
  • Refusal to pay a valid claim
  • Delaying payments of a valid claim
  • Unreasonable delays or refusals to settle a claim
  • Failing to provide explanations for a denied claim
  • Not communicating about claims or claim status
  • Misrepresenting the facts of coverage under the policy
  • Interfering with a policyholder’s ability to defend a lawsuit

This is not an exhaustive list and there are other situations that can constitute bad faith. An experienced Los Angeles unfair insurance claims attorney can help guide you through your legal options.

Free Consultations are Available

E-mail us or call us at 310-997-0904 to discuss your denied insurance claim with an experienced attorney.

Compensation for bad faith insurance claims

When an insurer commits bad faith practices it can lead to costly and extensive losses for the policyholder. You may be entitled to some of the following compensation:

  • Costs related to filing a lawsuit
  • Costs a policyholder paid that should have been covered under their policy
  • Costs paid to an injured party
  • Legal fees
  • Damages for emotional distress

You may also be able to recover punitive damages in some cases. Policyholders may be entitled to more or fewer damages that are not listed here. The compensation you are entitled to be contingent on the details of your case.

Experience and Success on Your Side

Bad faith insurance laws demand that your insurance company follow your policy and treat you fairly when you need their services. When they don’t, they are guilty of unfair insurance claims practices and can be held liable for breach of contract. Examples of insurance bad faith include:

  • Denying a valid claim
  • Withholding information about your claim and potential benefits
  • Refusing to make the payments you are entitled to receive by your policy
  • Delaying funds for accepted insurance claims

Whether you are trying to receive long-term disability insurance after a motor vehicle crash, workers’ compensation after a construction accident, or other insurance benefits, our team can help. Let us put more than 30 years of experience to work for you.

Contact Us Today

If you or a loved one are victims of unfair insurance practices, e-mail us or call us at 310-997-0904 for a free initial consultation. We represent clients in Los Angeles and throughout Southern California.