Insurance Disputes / Bad Faith
In today’s world, insurance surrounds us. We are insured when
we drive, at home, on vacation, and at the job. Because of the large
impact insurance has on our lives, insurance companies are strictly
regulated by the law. An insurance policy is a legal contract between
you and the insurance company. In addition to common contract law
governing the contract between you and the company, insurers are also
bound by a duty of good faith and fair dealing when handling your
insurance claim.
These laws provide
that an insurance company cannot withhold payments of benefits offered
in your policy. They must reasonably investigate your claim once reasonable
notice has been given. An insurer cannot use unreasonable settlement
tactics to get you settle your claim. Despite these regulations, insurance
companies will often test the limits when handling valid insurance
claims.
Insurance disputes
or bad faith claims can include situation involving: