Rapier Law Firm
Practice Areas Menu

Understanding bad faith insurance

It’s not unreasonable to expect your insurance company to pay your health claims promptly, should the need arise. In some circumstances, they don’t always do this. Health insurance providers often use tactics to avoid responsibility by denying the policy covers the claim or by delaying the investigation of the claim.

Luckily for you, state laws and regulations protect you and prohibit bad faith by insurers. You may be able to file a bad faith insurance claim if an insurance company is violating their law-abiding duty.

What is bad faith?

The term “insurance bad faith” is becoming more recognizable among people, but many may not understand its true meaning. The law prohibits bad faith by insurers and holds insurance companies to a standard of “acting in good faith.” If they don’t act in good faith, a bad faith claim may come forth. This is not the only requirement, though.

Examples of bad faith insurance practices

Bad faith practice may include:

  • Denying or discounting payment for a valid claim without a reasonable basis
  • Offering a settlement that is unconsciously low and unsupported by the factual record
  • Failing to affirm or deny coverage of claims in a timely manner
  • Ignoring contact about a valid claim
  • Using offensive tactics
  • Failing to conduct a sensible investigation into a valid claim
  • Requesting documentation that is overly burdensome
  • Refusing to give a basis
  • Misrepresenting the law or policy language

When pursuing a bad faith claim in Illinois, you must prove that your insurance company delayed your claim, refused to cover your claim in full or disputed the amount of your claim, and that the company’s action was unreasonable and vexatious. The rules on bad faith litigation vary among states. An experienced insurance attorney can help protect your rights if you believe your insurance company acted in bad faith.

No Comments

Leave a comment
Comment Information
  • Illinois Trial Lawyers | Association
  • Super Lawyers
  • American Association For Justice
  • The White Helmets
  • ride
  • Easterseals