|
This document is also available as a PDF.
Homepage About FreeAdvice Privacy Policy Media Coverage Tell a Friend
: insurer's bad faith
Related Topics: automobile insurance | business insurance | disability
insurance | health care insurance | insurance | life insurance | property
insurance
Page 1 of 5 in this topic 1 2 3 4 5 Next page IF MY INSURANCE COMPANY DENIES MY CLAIM, DO I HAVE ANY
RIGHTS? Absolutely Yes. If an insurance company fails or refuses to honor its contract and pay a valid
claim, you have the right to bring a civil action for damages against that insurance company.
In addition to suing for a "breach of contract", you might be able to bring a "tort" claim
seeking damages based upon the insurer's "bad faith" handling of the claim. DOES THIS APPLY ONLY TO CERTAIN TYPES OF INSURANCE CLAIMS? No. The unsupported denial of any insurance claim (including claims under policies covering,
auto, disability, life, health and property -- such as homeowners or casualty claims) may
subject the insurer to damages that go far beyond the amount the company should have paid
under the insurance policy in a civil action. DO DAMAGES FOR AN INSURER'S BAD FAITH GO BEYOND WHAT I WOULD
BE ENTITLED TO UNDER THE CONTRACT? Yes. In addition to what the insurer owes you under the policy (plus interest), if the denial
can be shown to have been "unreasonable," you might also recover "consequential damages"
(monies you had to pay out-of-pocket because of the denial), and "extra-contractual
damages" to compensate for mental and emotional distress, and, in some cases, "punitive" or
"exemplary damages" designed to punish the insurer and deter it and its employees from
wrongfully denying similar claims in the future. CAN I RECOVER THESE "EXTRA-CONTRACTUAL DAMAGES" IN EVERY
CASE WHERE BENEFITS HAVE BEEN DENIED? 1 of 2 8/6/99 1:34 PM Insurer's bad faith at freeadvice.com, w... lawyers who help in insurance law cases wysiwyg://58/http://www.freeadvice.com/law/596us.htm No. Again, the denial by the insurer must be shown to have been unreasonable. A legitimate
dispute or disagreement over coverage or benefits will likely not give rise to a bad faith
claim. Further, in order to recover punitive damages, one must show that the insurer has
acted with "oppression, fraud or malice" and, indeed, that its conduct was "despicable".
(These are difficult standards to reach.) IN GENERAL, WHAT OBLIGATION DOES THE INSURANCE COMPANY OWE
TO ME REGARDING MY CLAIM? In most states your insurance company has a duty to handle your claim promptly, reasonably
and in "good faith." WHAT DOES THE DUTY OF "GOOD FAITH" INVOLVE? The duty of "good faith and fair dealing" basically means that your insurance company must adjust your claim (either pay it or deny it) within a reasonably prompt time,
must cooperate with you regarding the claim (timely respond to your letters and phone
calls),
must tell you in writing precisely why it is denying the claim specifying each contract
term or provision upon which it relies,
must attempt to find a basis to pay the claim rather than find reasons to deny it, and
must (as the duty itself states) "play fair" with you. Page 1 of 5 in this topic 1 2 3 4 5 Next page Use the pull down menu to find a lawyer who can help you: Find Insurer's Bad Faith lawyers in New Jersey
(a new browser window will open on your screen) Monthly Newsletter! Enter E-mail ® is the leading legal site for consumers and small businesses. It provides general legal information
to help people understand their legal rights in 100 legal topics, but is not a substitute for personal legal advice from an attorney.
You are welcome to view FreeAdvice® for your own personal, non-commercial purposes, AS IS, subject to our disclaimer and
conditions of use. FreeAdvice.com and AttorneyPages.com are units of Advice Company © 1996-1999 - All Rights Reserved.
FreeAdvice® is a registered trademark. Comments? Please send them to admin@adviceco.com 2 of 2 8/6/99 1:34 PM |
| Search |
| Mirrors |