- October 13, 2009
- In insurance
As consumers, we all pay exorbitant premiums to insurance companies in good faith, expecting in a return of good faith that the insurance company will pay any claims submitted against your insurance policy. However, insurance companies are in business to make money, not to pay claims. Paying claims affects profitability.
Enter “bad faith.”
When you purchase insurance coverage, you enter into a contract with the insurance company. You pay the insurance company for future protection through premiums and the insurance company pays claims submitted against your policy. A simple definition of “bad faith” in the legal world relative to the situation at hand is a breach of contract, a failure to act in good faith.
Examples of bad faith acts by insurance companies are:
- An insurance company fails to conduct a claim investigation in a timely manner.
- An insurance company fails to conduct a thorough claim investigation to prevent paying a claim.
- An insurance company unreasonably delays in payment for a claim.
- An insurance company unreasonably denies claim benefits.
- Any situation where the insurance company willfully fails to honor a legitimate claim on the coverage that they have written for a client’s policy that is in good standing.
Insurance companies market themselves as beneficial entities that exist solely to aid their insureds in their time of need because of unforeseen accidents and catastrophes. In reality, the insurance industry is a for-profit enterprise known to act in the best interests of their shareholders rather than those of us who pay ever-increasing premiums for coverage.
Of course, not every insurance transaction translates into bad faith. However, if an insurance company has denied you a legitimate claim and you feel that it is an act of bad faith, it may become necessary to hire an experienced bad faith insurance claims attorney such as Samer Habbas. He will review the circumstances of your potential claim and explain your remedial options. The initial consultation is always free at the Law Offices of Samer Habbas, so don’t delay!