Over the past 10 years, bad faith claim lawsuits that are linked to the insurance industry have increased at a rapid pace. For example, a policyholder may have divulged the fact that he or she had a pre-existing condition when seeking insurance. The issuer may have known that the policy selected would not cover such conditions, but nevertheless took the individual's money anyway, knowing that future claims would be denied if related to the pre-existing issue. This is just one example of a bad faith insurance claim.
Essentially all bad faith claims involve inappropriate rejection of valid submissions for compensation. Some companies even go as far as to "create" situations in order to refuse claims. For instance, if a company wishes to deny someone's coverage for medical treatment for a heart attack, an employee may search until a scrap of information in one's medical record is found that indicates the person had an isolated incident of heart palpitations, which is not evidence that the person concealed a pre-existing heart condition when seeking coverage.
Any insurer that knowingly and willfully refuses to pay or avoids an obligation under the terms and conditions of the policy may be ordered to pay the claim as well as damages to the customer when legal action is pursued. For this reason, many cases of this type are settled out-of-court so that the company can avoid negative publicity.
There are specific cases where employees of such companies have been ordered to testify. Often, incriminating evidence is discovered when the employees' testimonies are reviewed. For example, statements made by those who work for certain insurers frequently expose internal policies that are in place for the sole purpose of routinely rejecting valid claims.
Initially, the bad faith concept encompassed only the out and out denial of valid claims. However, legal action has since been extended to include a variety of other issues, such as unnecessary payment delays. The amounts awarded under such conditions are small compared to those won by litigants whose claims were flatly denied, but many people seek such compensation anyway.
Other bad faith claims lead to devastating consequences, the latter of which can be financial or medical in nature. One highly publicized case involved a person who was told she must reuse urinary catheters because the policy issuer refused to pay for new supplies even though the latter should have been covered. The patient was subsequently hospitalized due to a severe bladder infection and was later awarded a substantial amount of money for damages.
Proof and evidence are essential regarding bad faith claims. The client or the client's attorney must be able to show a paper trail documenting inappropriate actions on the part of the insurer. It is also vital to locate witnesses who are employed by the company and can verify that attempts were made to wrongfully refuse claims and that such actions were concealed.
It is critical for one to seek legal representation concerning a bad faith insurance claim. This is because insurance laws are exceptionally complicated, and therefore difficult for a layperson to understand. Unfortunately, many individuals who attempt to represent themselves during such cases lose due to lack of knowledge about various loopholes. For this reason, anyone facing such a dilemma should seek the advice of a qualified attorney.
Essentially all bad faith claims involve inappropriate rejection of valid submissions for compensation. Some companies even go as far as to "create" situations in order to refuse claims. For instance, if a company wishes to deny someone's coverage for medical treatment for a heart attack, an employee may search until a scrap of information in one's medical record is found that indicates the person had an isolated incident of heart palpitations, which is not evidence that the person concealed a pre-existing heart condition when seeking coverage.
Any insurer that knowingly and willfully refuses to pay or avoids an obligation under the terms and conditions of the policy may be ordered to pay the claim as well as damages to the customer when legal action is pursued. For this reason, many cases of this type are settled out-of-court so that the company can avoid negative publicity.
There are specific cases where employees of such companies have been ordered to testify. Often, incriminating evidence is discovered when the employees' testimonies are reviewed. For example, statements made by those who work for certain insurers frequently expose internal policies that are in place for the sole purpose of routinely rejecting valid claims.
Initially, the bad faith concept encompassed only the out and out denial of valid claims. However, legal action has since been extended to include a variety of other issues, such as unnecessary payment delays. The amounts awarded under such conditions are small compared to those won by litigants whose claims were flatly denied, but many people seek such compensation anyway.
Other bad faith claims lead to devastating consequences, the latter of which can be financial or medical in nature. One highly publicized case involved a person who was told she must reuse urinary catheters because the policy issuer refused to pay for new supplies even though the latter should have been covered. The patient was subsequently hospitalized due to a severe bladder infection and was later awarded a substantial amount of money for damages.
Proof and evidence are essential regarding bad faith claims. The client or the client's attorney must be able to show a paper trail documenting inappropriate actions on the part of the insurer. It is also vital to locate witnesses who are employed by the company and can verify that attempts were made to wrongfully refuse claims and that such actions were concealed.
It is critical for one to seek legal representation concerning a bad faith insurance claim. This is because insurance laws are exceptionally complicated, and therefore difficult for a layperson to understand. Unfortunately, many individuals who attempt to represent themselves during such cases lose due to lack of knowledge about various loopholes. For this reason, anyone facing such a dilemma should seek the advice of a qualified attorney.
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