All insurance companies have the obligation to their insured, the ones who pay their premiums during every billing period, to represent them and act in good faith. On the opposite end of the spectrum, an insurance company who acts in bad faith goes against the best interests of the policyholder.
Below, our New Orleans consumer protection lawyers break down some of the most common ways that insurance companies act in bad faith. Read on to learn more!
Signs an Insurer Is Acting in Bad Faith
At Scott, Vicknair, Hair and Checki, LLC, we have seen many people become disheartened and even suffer great losses over bad faith insurance practices. Those individuals are often the victims after a serious incident that might include financial losses, injuries, damage to their private property, a diminished reputation, to name a few.
Here are some of the most common types of medical malpractice:
1. A delay in settling one’s claim.
All insurance companies required to settle a claim in a timely manner, and are prohibited from delaying settlement unnecessarily.
2. Failure to employ the right investigation techniques.
The insurance company should exhaust all of the known and standard methods for investigating an insurance claim. They might violate this by using unethical or even illegal techniques. They might outright refuse to look further into the case and deny it at all.
3. Offer a “lowball” settlement.
This is one of the most common tactics that insurance companies will use. This lowball settlement offer is often absurdly and unreasonably low. If you accept it, the case is then closed, and you will not be able to reopen the case to claim further compensation. This can be problematic without advice from a knowledgeable New Orleans attorney to determine the full extent and value of your claim.
4. Conflict of interest.
Insurance companies should not agree to assist your claim, as well as the claim of the other party involved.
5. Canceling your policy.
Arguably, this can be the most aggravating and confusing for policyholders. Insurance companies have been known to outright cancel policies after someone has made a claim.
As these are only a small portion of the many different examples of bad faith, our best advice to you would be to seek legal counsel first to see if you might have a bad faith insurance claim on your hands. If that is the case, you deserve to receive the proper compensation that is due to you. You also have the right to take action against those insurance companies who have acted unethically or illegally and not on your behalf.
Please contact us today and request a free case review from Scott, Vicknair, Hair and Checki, LLC.