D.J. Banovitz – January 7, 2013
Learn about some common bad faith insurance claim practices. If you are dealing with a denied claim after unfair practice, get legal help from a Denver attorney.
Unfortunately, bad faith insurance practices can leave victims without the compensation to which they are entitled following an accident. There are many different types of practices insurance adjusters or companies may use, and some may be left facing an unfairly denied claim. Fortunately, by filing a claim of bad faith, victims of these practices may fight for compensation.
In one case, as relayed by the Albuquerque Journal, a man’s family was awarded nearly $12 million after evidence was presented that the insurance company had altered its records about a week and a half after the man’s accident to make it appear that he did not have coverage. The insurance company contended that the policy lapsed only 90 minutes before the crash. While not all awards will be this large, consumers who are unfairly treated by an insurance company may have recourse to recover damages.
10 Bad Faith Insurance Claim Practices
1. Unjustified delay of settlement. Insurance companies may delay your claim for no valid reason. They do this in hopes that if they take too long, you will just forget about it.
2. Lack of communication. In some cases, the insurance company may not notify you of its decision in a timely manner or may fail to respond to correspondence.
3. Lack of proper investigative techniques. When investigating your claim, the insurance company may use illegal or unethical methods to obtain information regarding your claim. In some cases, the company may refuse to investigate your claim at all and simply deny it.
4. Unreasonable demands. In order to delay the process or find a way to deny the claim, the company may ask for an unreasonable amount of documents in order to start the process. It may ask for items unrelated to the case and deny your claim if you cannot provide them.
5. Lowball offers. In this case, the insurance company may offer an unreasonably low settlement. Do not accept any offer before consulting your attorney.
6. Use of threats. The company may threaten the victim by ordering him or her to do something or to not do something or else the company will refuse to pay the claim.
7. Changing the policy. A company may change the terms of the policy after a claim is filed, and use its new terms to deny the claim.
8. Cancelling the policy. The company may cancel the policy after a person makes a claim.
9. Not disclosing the policy limits. If the adjusters will not reveal aspects of the policy, you may be dealing with a bad faith insurance claim practice.
10. Conflict of interest. An insurance adjuster may attempt to handle your claim and the claim of the other party.