The role of the insurance company is to provide policies that allow people with peace of mind specially when an unpredicted events like any accident happens. However, not every insurance agency operates the same way. Some establishments put profits before their policyholders, unreasonably denying, delaying, or reducing claims. This practice is called bad faith insurance. Without an insurance bad faith lawyer in Los Angeles by your side, you might have trouble getting what you deserve.
An insurer is legally bound to honor a valid claim and ensure you receive an adequate settlement on time. If you’ve been duped by an insurer, A1 Accident Lawyer could help. Our experienced attorneys can analyze your case and policy to determine whether you have a bad faith insurance claim. You might even be entitled to compensation more than your original claim amount.
A Guide to Understanding ‘Bad Faith’ in Insurance
Ideally, an insurance company must act in good faith and honor a legitimate claim. Not doing so could count as bad faith insurance. Such an insurance claim can arise when an insurer unreasonably denies or delays your claim.
Unfortunately, some insurance companies deny claims instantly, making it tough for policyholders to get their due without a lawyer by their side. Policyholders may even have to sue the insurance company to get what they’re entitled to. Generally, there are two types of bad faith claims: a first-party claim and a third-party claim.
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First-Party Bad Faith Insurance
A first-party bad faith insurance claim may arise when your insurance company doesn’t pay. Bad faith can occur with various insurers, including car insurance, homeowners’ insurance, and health insurance. If you sustain damages that are covered under your policy and your insurer refuses to investigate the claim or simply resists a payout, you could potentially sue them.
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Third-Party Bad Faith Insurance
A third-party bad faith insurance claim commonly arises when another party’s insurance firm is responsible for compensating you, for example, after a car accident. If the insurer refuses to settle, you or the insured party could take the insurance company to court for bad faith.
Not All Denied or Delayed Claims Count as Bad Faith
There can be several legitimate reasons for a denied, delayed, or reduced claim. In such situations, even a wrongful death lawyer can’t help. You’ll find a list of such scenarios below if you continue reading. None of these situations counts as bad faith insurance:
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Differences in Opinion About the Loss Amount
Based on the info available, a difference in opinion between an insurance adjuster and a policyholder regarding the loss amount doesn’t usually constitute bad faith unless an adjuster has no proof for their findings.
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Exclusions in Coverage
If the damages you or your property sustained weren’t covered under your insurance policy, claim denial is usually legitimate.
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Your Proof of Loss is Inadequate
A delay in claims processing isn’t unusual if you don’t provide enough proof of your losses. You could also have problems getting a claim approved if an insurance adjuster disputes your version of events or calculates a vastly different loss amount.
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Liability is Contested
Fault for a car accident, for example, isn’t necessarily clear-cut. The drivers’ insurance companies may not agree on who’s liable and responsible to pay out a claim.
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Insufficient Medical Evidence
You will be unable to prove to your insurance company if you do not see a doctor soon after an accident. The insurance company may deny to pay the medical expenses if there is a lack of solid medical records that are related to your accident injuries.
The policy of any insurance company is very much complicated with lots of exclusions and clauses. Here only an experienced bad-faith insurance lawyer can guide you by carefully reviewing the policy terms and conditions to see if your claim was unfairly denied or delayed by the insurance company or not.
When You Need a Lawyer?
Generally, getting what you deserve from an insurer without an attorney in your corner can be challenging, especially if your claim has already been denied. Insurers often try to get out of paying valid claims by delaying or denying claims, hoping policyholders give up fighting for their due. The sooner you have a bad-faith insurance attorney on your side, the sooner you can receive the payout you deserve. Seek legal advice when an insurance company:
- Ignores your claim
- Refuses to investigate your claim
- Fails to notify you of additional information needed to process your claim
- Offers a lowball settlement amount
- Denies your claim without an explanation
- Determines your proof of loss as inadequate
- Failed to explain policy exclusions before policy purchase
- Charges a higher premium after you file a claim
- Cancels your policy abruptly
- Fails to reach a settlement despite clear liability
- Uses threatening or abusive tactics to push you into accepting a settlement
It’s just wrong that some insurance companies aren’t upholding their end of the bargain when you have paid premiums for months or even years. If you face situation like this, then do not hesitate to consult an insurance disputes lawyer to know the options which you deserve.
Lawyers Can Help Fight Bad Faith Insurance
Events of bad faith insurance aren’t uncommon. A professional insurance lawyer can help you fight against your unreliable insurance company. Before filing a lawsuit, consider the following points:
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Working With the Insurance Firm
In some cases, rather than immediately turning to the law, working with the insurance company can be advantageous. Make sure to comply with all requests for information and provide proof for your losses. Demonstrating your willingness to work with your insurer can also help with your case later on if you have to sue. If your insurance company is unwilling to settle, you’ve done everything possible to resolve the situation in good faith.
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Filing a Complaint Against the Insurance Company
Insurance regulations and laws tend to be enforced by state rather than federal laws. Therefore, you can potentially file a complaint against your insurance with your state’s Department of Insurance. The departments usually try to resolve insurance complaints with mediation.
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Filing a Bad Faith Lawsuit
Sometimes there was no option left for the policyholders rather to file a complaint against the insurance company to get their settlement. In this scenario, a professional and skilled insurance bad faith lawyer can help you with your options and guide you.
Conclusion
When you purchase an insurance policy, you expect your insurance company to uphold its end of the deal. Usually, this means honoring valid claims, processing them promptly, and paying out compensation you are entitled to under the policy. However, that isn’t always the case. Sometimes, insurance companies deny, delay, or underpay claims for reasons that aren’t genuine. When that happens, an insurance bad faith lawyer in Los Angeles from A1 Accident Lawyer can come to your rescue.
Legal Disclaimer: This content does not constitute legal advice and is for general informational purposes only. Insurance bad faith laws vary by situation. Consult a qualified lawyer to discuss your specific case.
Written by a professional insurance bad faith lawyer serving Los Angeles and California.
FAQs
Q1. What damages can you recover in an insurance bad faith claim?
A1. In an insurance bad faith case, you may recover unpaid benefits, interest, emotional distress damages, attorney fees, and sometimes punitive damages if the insurer’s conduct was especially harmful or deceptive.
Q2. How long do you have to file a bad faith insurance claim in California?
A2. California sets time limits based on the policy and claim type. Missing deadlines can affect your rights, so acting early helps protect your ability to pursue compensation.
Q3. Can bad faith apply to health insurance claims?
A3. Yes, health insurers can act in bad faith by denying necessary treatment, delaying approvals, or ignoring medical evidence, especially when the policy clearly covers the requested care.
Q4. Do you need proof that the insurer acted intentionally?
A4. You do not need to prove intent. Showing the insurer acted unreasonably, without proper investigation or justification, may be enough to support a bad faith claim.
Q5. Will filing a bad faith claim cancel your insurance policy?
A5. Insurers cannot legally cancel a policy in retaliation. Sudden cancellation after a dispute may itself signal bad faith and strengthen your claim against the insurer.
Summary: Learn how unfair claim denials and delays work, when to seek legal help, and how an insurance bad faith lawyer in Los Angeles can protect your rights and help recover the compensation you deserve.