Insurance Bad Faith

In America, individuals and businesses have the opportunity to obtain numerous types of insurances which include life, medical, disability, homeowners, and automobile to name a few. The policies often provide first and third party coverage.

In order to understand the concept of insurance bad faith, one must first understand how insurance works. When an insurance policy is sold, you do not acquire a tangible product. When you purchase insurance, you are buying a promise that upon the happening of a certain event the insurance company will be there for you. If the promise is not kept, you may have a claim for insurance bad faith.

First party insurance coverage is a promise from an insurance company to an individual or business to pay you, the insured, for loss suffered if a certain event such as fire, illness, disability, death or theft of property occurs. The purpose of first party insurance is to protect the insured against risk of loss which can include income loss if they become disabled, repair or replacement costs if personal property (such as an automobile) or real property (such as home) are damaged or life insurance benefits if death occurs. The purpose of first party insurance is to make sure that if a tragic event occurs, you are not financially ruined. When you buy first party insurance, you pay premiums and in return you get a promise that if something bad happens such as your house burns down, a family member passes away or that you are no longer able to work due to a disability, the insurance company will be there to fulfill the promise made when the policy was sold.

Third party liability insurance coverage (commonly called liability insurance) is intended to protect the insured from lawsuits or claims. When you purchase third party insurance, the insurance company is promising to be there to defend and protect you if you are sued. You should not need to pay for a lawyer or pay damages if you are found to be at fault for a covered claim. An example of a liability claim is; if as a result of a motor vehicle accident you are sued, then your insurance company has an obligation to make sure that you are protected. This means the insurance company must take all steps necessary to protect you from a lawsuit or judgment. With third party insurance, you should not need to pay for a lawyer or pay any sum of money as a result of the claim.

When a covered loss occurs, the insurance company's obligations under the policy of insurance is triggered. The claims department of an insurance company is required to deliver the promise that was sold. The claims department should provide a prompt, fair and efficient delivery of the promise to provide coverage for a loss. An insurance company may not utilize the claims department as a profit center. Decisions relating to claims should be made without regard to company profitability.

If you or a loved one has suffered an insured loss and presented your claim to your insurance company, the insurer is legally obligated to handle your claim like it was their claim and to act in good faith. Insurance companies are required to pay claims promptly and not deny claims without a reasonable basis or intentionally offering a lower than reasonable settlement.

If you feel that, you are the victim of insurance bad faith or have been denied insurance coverage under any type of insurance policy for benefits including those relating to:

• disability payments
• death benefits/life insurance
• medical payments
• homeowner claims

or if you have been sued and your insurance company refused to defend the claim or the case proceeded to trial and an award was entered against you for a sum of money in excess of your policy limits, you may have a claim for insurance bad faith.

If you have been victimized by an insurance company's greed, recklessness or indifference, you need an attorney that will explain your rights and stand up for them. AJN never charges the client any fees to help connect a client with an AJN certified attorney. We won't direct you to just any attorney, you will be connected to an expert in the area of insurance bad faith law.

The insurance industry has scores of attorneys working for them; AJN will ensure that you, as a victim of insurance bad faith, do not just get an attorney but the right attorney or team of attorneys working for you. At AJN, we can never guarantee the outcome of a case but by finding the right attorney that has a track record of successfully taking on the insurance industry you have taken the first step in levelling the playing field and obtaining justice. In this world it is often not what you know but who you know and with AJN you don't need to know everybody because by utilizing the American Justice Network you are leveraging our relationships and making them your own.

It's a fact that the insurance companies consider who the lawyer is when determining the value of a claim. A representative designated by one of the largest insurance companies in the world to speak on their behalf, was asked what factors claim handlers use when determining the value of a claim. The insurance company representative stated that not only do they consider if there is an attorney but they strongly consider who the attorney is.