Bad Faith
From Lawyer-personal-injury
Insurance Bad Faith
Insurance bad faith cases are controlled by state law and therefore vary by state. However, generally the term “bad faith” refers to a legal claim a policyholder may have against his or her insurance company when the insurance company violates the “implied covenant of good faith and fair dealing “ that exists in every insurance contract.
Examples of conduct that might be in bad faith are: improper or inadequate investigation of a claim, refusal to pay the appropriate value of damaged property, improperly refusing to defend or indemnify you in a case where someone makes a claim on your policy, delay in handling a claim, refusal to defend a claim, or wrongfully interpreting a claim so as to withhold benefits.
In bad faith cases, punitive damages are often available. Punitive damages are meant to punish the wrongdoer for their conduct, whereas compensatory damages are meant to compensate the injured party for the actual damages they incurred. For that reason punitive damages are often substantially higher than compensatory damage awards.
If you or a loved one has been the victim of insurance bad faith, contact us today to explore your legal rights. The law varies as to the amount of time you have to file a claim. Therefore, it is important that you consult an attorney as soon as possible.
