If an insurance company acts in “bad faith,” it means that the insurance company is not complying with the terms of the policy agreement. Instances of bad faith can include a dismissal of a claim without adequate explanation, a refusal to compensate the policyholder fully and fairly in abidance with the contract, a failure to investigate a claim adequately, and the failure to disclose the full terms of the insurance policy. All of these instances constitute grounds for suing an insurance company.
If a person feels that an insurance company has acted in bad faith, he or she should seek legal counsel to determine whether or not there are adequate grounds to sue. Insurance companies should not act in bad faith; however, at times they do. Policyholders who have been injured or misled by an insurance company deserve to get justice, and suing an insurance company ( ACTSLaw/suing- insurance-company ) is one way to do so.
When an insurance company fails to uphold their end of a policy agreement, policyholders can take legal action against them and file a suit. By suing an insurance company, depending on the individual case, a policyholder may be able to recover the full amount of his/her economic losses, which may include lost or reduced wages and attorney or legal fees. Policyholders can also sue for monetary compensation regarding non-economic losses. For example, if an insurance company denies a claim without grounds for doing so, the policyholder may suffer physical and emotional effects from that denial. He or she may experience severe financial hardship, which may lead to other areas of that person’s life being disrupted or negatively impacted.
On a Case by Case Basis
Depending on the facts of the state, the policy, and the state where the claimant resides, claimants can sue for the full recovery of their economic losses and get the justice they deserve. While some people may think that suing an insurance company is a losing battle, insurance companies that act in bad faith are liable to be sued; the whole premise of insurance rests on the integrity and honesty not only of the policyholder, but also of the insurance company. If an insurance company refuses or neglects to honor a legitimate claim, they must be held accountable. But how does one know when it’s time to sue?
For one, if the insurance company is sending a claimant to their attorney, that claimant is going to want to ‘lawyer up’ as well. An attorney will provide the claimant with the power and protection he or she may need to avoid being further taken advantage of by the insurance company. Secondly, if a claim has been excessively delayed, or if an insurance company hasn’t responded to a claim, it may be time to sue. While suing an insurance company can be a long process, it may be the only way to get justice, especially if a claim has been denied without good cause. Anyone who thinks their claim was denied unfairly should seek legal ( ACTSLaw/about ) counsel to determine whether to file a lawsuit against the insurance company.