Bad Faith Insurance covers a wide range of practices undertaken by companies in the insurance industry to prevent you from obtaining money for valid insurance claims. A bad faith insurance claim, for example, may involve complaints that the insurance company repeatedly lost paperwork, sent you for unnecessary doctor's appointments or ignored information from your doctor indicating you have a valid medical problem. A bad faith insurance company will often drag out the claims process in an attempt to avoid paying out a claim, which often puts customers in a position of having to cover expenses while waiting for a claim to be approved.
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Bad Faith Insurance Company
When you purchase insurance, you and the insurance company agree on the terms and conditions that specify the coverage or compensation payable to you in the event that you suffer a loss or injury. Insurance can cover your medical bills, property bills and/or vehicle bills. Unfortunately, some bad faith insurance companies use a variety of tactics to delay or avoid paying out a valid claim.
This can put you in a terrible situation. For example, if you have a medical claim that the insurance company delays paying, you may be put in the position of covering all medical costs on your own—and dealing with the financial burden and possible debt—or eliminating vital medical help that you cannot afford, putting your health in jeopardy. The consequences of bad faith insurance can be far-reaching, affect your finances, your quality of life and even your health.
Bad Faith Insurance Tactics
Some bad faith insurance tactics may simply seem inconvenient at first, until a pattern appears. Customers report that insurance companies will repeatedly lose or misplace important documents, requiring them to fill out the same paperwork over and over. They may simply deny a claim at first, hoping that the customer will not appeal the denial. Or they may put a limitation on the time allowed for a claim, and then delay awarding the claim until that time has passed.
Among bad faith insurance tactics:
Failing to pay a claim in a timely manner;
Offering an amount below what the claimant is entitled to;
Failing to defend a policyholder against a third-party claim;
Using a policyholder's previous claims as grounds to deny a new claim;
Failing to conduct a reasonable and full investigation of the claim;
Misrepresenting important facts or insurance policy provisions as they relate to coverage;
Misuse of claimants' medical records;
Requiring excessive paperwork;
Canceling a policy after a claim is made;
Purposely targeting high-cost claims for denials; and
Ignoring expert opinion in cases where that opinion would result in a claim being paid out (such as finding that a death was suicide when a medical examiner has ruled it accidental);
Bad faith insurance means that an insurance company has illegally denied or delayed paying a valid claim. Doing so can have consequences for you and your loved one. Insurers have a duty to act in good faith toward their policyholders; failure to do so can be considered bad faith insurance. If this happens, you may be eligible to file a lawsuit against your insurance company. In cases where the insurance company's conduct is beyond unreasonable, punitive damages may be awarded.
Bad Faith Insurance Legal Help
If you have been denied a legitimate insurance claim, please click the link below to send your story to a lawyer who will evaluate your claim at no cost or obligation.
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USAA will not pay my doctor or the $7,000 they still owe me. The auto accident happen 12/21/12.
Posted by Michigan
In 2010, our neighborhood was decimated by fire as a result of illegal elec. hook-up, with associated strong winds. The cause of the fire was of great concern here in the city of Detroit, MI. Even though we are the listed owners of the policy, our insurance company insists on payment to other entities who did not purchase the policy, including the fire restoration hired by the insurance company who never completed any work on our property. This is a corrupt attempt not to pay off the insurance policy. We very much need legal assistance; willing to pay upon a contingency basis. PLEASE CONTACT.
Posted by Indiana
Anthem Blue Cross has refused to pay claims or acknowledge that my wife's surgery was "In-Network" and "Pre-certified". They have put one surgeons bill of $7500 - their allowable was $1529.30 and they added this to an "Out of network" deductible. Out of over $10,000 in doctor bills - they have paid $258.77. And they tell me the claims are closed.
Posted by Florida
loss of soul mate
Posted by Texas
At the time I received services, I was employed with my company and benefits were available. My employer declared Chapter 7 bankruptcy a week after the services. The provider failed to submit the charges, in a timely manner. The ins co. (CIGNA) denied the claims. Is my issue with my former employer (MRG), the ins. co (CIGNA) or my medical provider?
Posted by Arkansas
In the 80s I took out a cancer policy with Capitol Life Insurance of Missouri with the understanding that the premium would not go up. The name was changed to Central Life Insurance. It started out with me paying under $20.00 a month. I was informed that the secretary at my job could not keep up with the changing price of my policy, so this would not be deducted from my check any more. When I checked I am now paying over $300.00 a month. Going up every three or four months. Is this legal?
Posted by Oregon
I was an independent insurance agent/registered rep. I invested a friend's money in Conseco fixed annuity. A year later, Conseco filed bankruptcy. My friend got nervous and redeemed, losing a back-end sales charge. Conseco also wanted return of my commission, which was contractual. I refused, based on the fact that the annuity would have remained in place had it not been due to the bankruptcy. Now, my license has been revoked and Oregon Dept of Insurance has me listed on their site as having been terminated due to withholding commissions. Do I have any recourse?
Posted by Pennsylvania
I purchased a Medicare Advantage Plan and pay an extra premium for better coverage. They sent me a book when I enrolled listing a hospital as one of their providers. In January 2008 they sent me the same information. I was hospitalized in May 2008 for 48 hours with a small stroke. In June 2008, that hospital was still listed on their website as a provider. I printed that out. I have the books. They denied my claim stating that that hospital hasn't been a provider since April 2003 and that the books must have been an oversight. There is more to the story about other expenses resulting from that hospitalization, but I'm trying to keep it brief.
Posted by Anonymous
I was a 15 year counselor, supervisor and interpreter for the probation dept. I suffered a herniated dissected disk in lower back saving a life. After months of misdiagnosis & abandonment, I was given an experimental, non-addicting drug; after stating allergies to opiates.
Dr. went on vacation. Opiate derivatives (pills) ran out. Pain & crashed. Called for help and was told: "Sorry your insurance doesn't pay their bills." I state: I have money! I'll pay. Answer was: "I am sorry, because of the contractual agreement we have with your insurance co. we can't take your money.
I lost my mind; the bad, bad, guys got away. Then things got much worse.
Posted by Washington
My mother in law bought long term care insurance policy 15 years ago. She has paid into the policy and never missed a payment at $,1000 a year. Now she is in an adult family home, and the insurance company claims the definition of nursing care and/or long term care has changed since she bought the policy, and now they will not pay out on the policy, which is $50 per day for five years. The insurance company failed to notify her of the "change" in definition of care. They said the definitions of care have changed over the years, and they are not obligated to tell her.
Posted by Missouri
The May 10th F-4 tornado passed 1/4 mile from the housing development where my home is located. All 11 homes suffered significant wind and baseball size hail damage. My roof was patched and evaluated by a roofer recommended by my agent. He stated replacement was required. The adjuster said there was minimal damage and the roof would be repaired. The other 10 homes in this development including the ones on either side of ours have been approved for replacement roofs. The roofer is adamant that there is much more damage than the adjuster is claiming and the roof requires replacement. The insurance agent and the adjuster are unwilling to give on this issue.
Posted by Florida
State Farm Took 10 months to pay for loss of business. My business of 17 years is ruined as well as my personal and business credit. I am disabled and my husband suffered a stroke during the turmoil of trying to receive compensation. It took over 3 months for them to come to the business to assess the damage. The premises was uninhabitable. We had a mold inspector come at our own expense and have the report. Black mold etc. They tried to strong arm us into settling when we had no money or business left. So much more..................Please help!!!
Posted by California
As per my knowledge I was covered upto 61,000 for my condominium, but after the damage Allstate informed me the I have only 6,100 for stucture damage coverage. The insurance agent never informed me or educated me.
Posted by Georgia
DAMAGES: loss of short term disability pay, pain and suffering, severe financial hardship including extreme debt. Inability to brestfeed due to milk depletion caused by stress.
I applied for short-term disability benefits in at the end of March 2007 due to a condition of scoliosis and late term pregnancy. My doctor advised that I not be on my feet for more than 30 minutes at a time. I work in sales and 90% of my job is done standing and/or walking. After returning to work and informing my manager of the doctor's decision, and I was told to leave work and apply for STD. After five months of calling, faxing, stressing, crying, being given false hope, and maxing credit cards to make ends meet, my STD was denied. MetLife's hired doctor (who never examined or even talking to me) decided my constant and severe pain was not serious enough to warrant my absence from work. I was denied any pre-partum and post-partum pay.
Posted by Anonymous
On a dark, and starless night back in 2001, I was driving my Saturn eclipse back home after a very long, as well as very tiring business trip. I'm a lower level executive assistant for a popular retail company, and I am often required to go along with my bosses to their meetings. Unfortunately, this one was out of state. My immediate supervisor told me that there simply was not enough company travel funds in the yearly budget available to afford to give me a plane ticket along with all of the executives that were given plane tickets.
They decided to upgrade to first class from business class at the last minute. This left me on the losing end, and I was forced to have to drive 200 miles round trip.
Anyway, on the way back I was hit by a careless drunk driver. My car was utterly destroyed, so to speak. I filed an insurance claim, after the police gave me his insurance information. The drunk driver was sent to alchohol rehab, and hopefully he will be able to stay sober after he gets out.
I submitted the insurance claim to my car insurance company. They tried to say that I don't have coverage for getting hit by another car. I pleaded with them that it was his fault, and that his insurance should be held liable. They persisted in their denial of my claim.
I decided to challenge the denial in court. I luckily have a cousin who is a lawyer. We took the insurance company to court, and the judge found them liable for having to see to it that the drunk driver's insurance company bought me a new car.
My old car had 60,000 miles on it, albeit I just bought it new three years ago.
I was actually bought an even better car model than the one that I originally had, as well.
My experience should prove that the
"little guy or person" can fight big insurance companies in court that deny legitimate claims, and win.