Insurance Bad Faith

When an insurance company fails to honor the obligations in your insurance contract, or fails to perform some other responsibility it has to you pursuant to the insurance you purchased, you may have a case against the insurance company for "bad faith." It is important to note that bad faith cases arise from disputes between you and your own insurance company - if another driver's insurance company is refusing to pay money to you, that is not bad faith since there is no insurance contract between you and another person's insurance company. Examples of bad faith can include all kinds of insurance, from health and dental to automobile and homeowners. Other examples may include failure to provide for a defense as required in the event you are sued, or failure to follow contractual procedures in the event of a dispute as to the amount of compensation to be provided to you under your own coverage after an accident.

Examples of Bad Faith Practices
Although insurance companies are supposed to protect their members, they sometimes try to avoid paying monetary compensation and/or reimbursement. Since insurance companies are in the business of making money, it is in their best interest to delay making payments or to avoid making them altogether. However, if excessive concern with turning a profit has led to a denial or a delay of benefits to which you are entitled, you may be able to file a bad faith insurance claim in North Carolina. Bad faith may come into play if an insurance company

• Does not handle a claim in good faith
• Fails to provide due compensation to its insured
• Denies coverage on an active policyholder
• Cancels the policy without consulting the policyholder
• Underpays a claim

Duty to Deal Fairly

In bad faith cases a jury is always asked whether under the facts the carrier acted reasonably. Denying benefits, delaying payments and paying less than what is owed are examples of bad faith. An insurance company has an obligation to thoroughly and promptly investigate all claims and must inquire into all the possible issues that might support an insured's claim. This obligation is not terminated simply because the insured files a lawsuit against the company. Where an insurer makes a belated offer of settlement, a cause of action for bad faith does not correct or set aside the previous wrongful conduct. Any payments made to the insured only reduce the amount of the insurance company's final liability as determined by a jury.

n a bad faith action an insurance company's business practices or common course of conduct is routinely admissible to show motive, opportunity, intent, plan, knowledge or the absence of a mistake or an accident in the manner in which it dealt with its insured. It is not necessary to show that the insurer intended to cause harm in a breach of the covenant of good faith and fair dealing. The policyholder need only show that the insurer failed to honor the agreement and had no cause not to pay what was due under the contract. When a person buys an insurance policy, the very risks that are insured against make it clear that if a claim is not satisfied the policyholder will suffer financial pressure and emotional distress. Policyholders obviously will be vulnerable to oppressive tactics by a carrier and insurance companies are presumed to know that a denial of benefits will very well result in emotional distress to their insured.

n all bad faith cases it is essential that measures be taken promptly to review all communication with the insurance company and investigate the insurance coverage in question before the statute of limitations expires. If you or a loved one is a victim of insurance company bad faith, call Mills & Levine, Attorneys at Law now at 877-660-4357 toll free, 704-660-1770 local or CLICK HERE TO SUBMIT A SIMPLE CASE FORM. The initial consultation is free of charge, and if we agree to accept your case, we will work on a contingent fee basis, which means we get paid for our services only if there is a monetary award or recovery of funds. Don't delay! You may have a valid claim and be entitled to compensation for your injuries.