Insurance Bad Faith

Insurance Bad Faith

When you buy a disability, health, property or life insurance policy you expect the insurance company to stand behind you when disaster strikes. Unfortunately, all too often that is not the case. At the Khalidi Law Firm, PLLC, we’ve seen firsthand how far insurance providers will go to avoid paying legitimate claims to policyholders. We’ve successfully represented victims of outrageous bad faith tactics by insurance carriers.

Some common ways an insurance company acts in bad faith include:
  • Denying that a valid claim is covered under the policy
  • Delaying investigation or payment of a claim
  • Paying only partial benefits for a claim
  • Canceling a policy after a claim is made
  • Failing to defend a policyholder who has been sued under a policy liability provision

A bad faith denial or limitation of an insurance claim is a legal cause of action that allows you to recover damages and restore your benefits from an insurance carrier.

The lawyers at the Khalidi Law Firm, PLLC have an in-depth knowledge of the insurance industry and their tactics. If your insurance company has denied, reduced or delayed your valid claim, we can help. We will engage medical professionals, economists and standard of care experts to help your family or business get the coverage – and peace of mind – you need and deserve. Insurance bad faith cases are handled on a contingency fee basis. There are never any out-of-pocket expenses and we receive no attorney fees unless we receive compensation from the insurance company.

What does insurance “bad faith” mean?

“Bad faith” refers to unreasonable or unfair conduct by an insurance company. An insurance policy is considered a contract between you and your insurance carrier. This contract requires that your insurance company acts in “good faith” toward you. When it unreasonably withholds the benefits of the policy, it is considered to be acting in “bad faith.”

How do I know I have a “bad faith” insurance claim?

When you purchase an insurance policy (life insurance, disability insurance, homeowners insurance or other) you are entitled to the full benefits of the policy if you have a covered claim. If the insurance company refuses to pay or delays your payment, you may have a bad faith insurance claim.

Can an insurance company deny my claim?

Yes, an insurance company has the right to deny your claim if you have reneged on your end of the contract, or if the claim is fraudulent or not covered by the policy. Bad faith occurs when the insurance company’s conduct is egregious.

What if I’m offered an unreasonably low payment by my insurance company?

If an insurance company intentionally offers a “low ball” settlement, far lower than what is reasonable, they could be acting in “bad faith”.

What can I recover if I sue my insurance company for “bad faith”?

If the Court finds the insurance company wrongfully denied your claim, you would be eligible to recover the benefits of the policy for the claim, and possibly consequential losses and damages suffered for emotional distress, lost income and attorney fees. In some cases where the Insurer has exhibited flagrant, intentional and/or gross misconduct, punitive damages are awarded.

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