What You Need to Know About Changes in Personal Injury Cases
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Insurance companies have an obligation of good faith and fair dealing in every insurance policy.
When an insurance company does not meet the standard of dealing fairly and in good faith as required by law, the insured person may be able to bring a claim against that insurer for the damage that it has caused. Battling an insurance company is not easy, and requires the skills and experience of Pennsylvania insurance claims lawyers who understand this playing field, like the team at Solnick Lawyers.
Bad faith can apply to any type of claim for insurance proceeds—including homeowners’ insurance, health insurance, auto insurance, and life insurance. Although there is no single definition of bad faith, it is generally when an insurance company acts unreasonably or unfairly in the handling of your claim, most often by denying or delaying payment on the claim without a legitimate basis to do so. If your insurance company fails to act reasonably in processing, investigating, or paying your insurance claim, you may have the right to file a bad faith lawsuit.
Some examples of an insurance company failing to process a claim in a reasonable manner and acting in bad faith include:
When your insurance company denies your claim without good cause, it may be the basis of a bad faith claim. A claim denial must be for valid reasons and an insurer should provide a written explanation of those reasons. If the denial is not valid, you may be eligible to take legal action against the insurer.
An insurance company should provide you with timely and correct information about your claim. If you are given inaccurate or delayed information, it could cause you to miss an important deadline or document request that affects your claim, and you may be able to bring a bad faith insurance claim against them.
In many cases, insurance companies do not want to pay out even when a claim is legitimate. They are for-profit companies and paying out on policies affects their bottom line. Some insurance claims representatives will intentionally or negligently slow down a claim, or ask for unreasonable amounts or types of documentation, knowing that it can frustrate and confuse a policyholder and cause them to abandon the claim or accept a lowball settlement offer.
When an insurance company makes a change to your insurance policy without telling you or even cancels it altogether, you could be uninsured without even knowing it. This can be considered bad faith on the part of the insurance company and can be the basis of a bad faith insurance claim.
An insurance company that tries to pressure the insured policyholder into accepting an offer may be acting in bad faith. Sometimes an insurer will incorrectly tell the insured that the offer is the only offer they will ever get or that it covers everything to which they are entitled under their insurance policy. In this situation, the policyholder can bring a legal claim against the insurer for bad faith dealings.
If you think that your insurer is acting unreasonably in the handling of your claim, contact our team at Solnick Lawyers to find out more about your legal rights.
A first-party bad faith insurance claim is brought against your own insurance company when they have acted in bad faith under your insurance policy with them. With only the insured and the insurance company involved, this can be a more straightforward claim but it is still complicated by the intricacies of insurance policies and insurance law.
A third-party insurance claim is brought when an injured person is entitled to compensation under another person’s insurance coverage but the insurance company acts in bad faith in relation to that claim. This could happen when someone is injured in a car accident in which another driver is at fault, so the at-fault driver’s insurance company is financially liable to the injured person. A third-party bad faith insurance claim is usually brought by the injured victim against the insurance company but some third-party bad faith claims are brought by the insured policyholder against their insurer. An injured victim might bring a bad faith claim because the insurance company has denied the claim without good cause, whereas an insured person might bring a claim because the insurance company did not settle a claim within the available policy limits when they had the opportunity to do so.
Filing a proper insurance claim from the outset is the first step to either pursuing or avoiding a bad faith insurance claim. However, if an insurer is acting in bad faith, you may not be able to avoid a bad faith claim even if you do everything right.
Know your policy. You should understand the extent of your insurance coverage and your rights under your insurance policy, and keep on top of the documentation and process when a claim has been filed. Insurance policies are complicated and often include many limited exceptions to coverage. A lawyer can help you to understand the fine print and handle the claims process for you.
Keep records and evidence. When an accident or covered event happens, gather as much information as possible to help with your claim. This would include photographs, medical reports and bills (if applicable), police reports (if applicable), and any other documents relating to the claim. This will make a claim easier to prove and value.
Comply with law and deadlines. When you file a claim, you should be aware of any requirements and deadlines required by law and under your individual policy. An attorney can advise you on these requirements so that your claim can proceed smoothly.
Do not sign anything. Always get legal advice before signing anything from the insurance company or accepting a check. You could be signing away important legal rights or your entitlement to fair compensation for your losses.
Contact an attorney. The insurance industry is complicated and the companies are happy to keep it this way because it gives them unequal power and protects their business. A personal injury lawyer who is experienced in this field understands the law and the systems and can protect you from the tactics of large and powerful insurance companies to get you the compensation you deserve.
The majority of bad faith Pennsylvania insurance claims that we handle are settled out of court for an amount agreeable to our clients. If a claim does proceed to trial, the court can do any of the following according to Pennsylvania law:
Whether in negotiations or trial, at Solnick Lawyers we work hard to ensure that our clients get the compensation they deserve.
Bad faith insurance claims require a knowledge of insurance law, as well as the skills to negotiate with a powerful insurance company and their lawyers. It is not something to undertake on your own, especially when you may also be recovering from an injury, such as a car accident or a slip and fall, and all the medical appointments and expenses that go along with that. If a bad faith insurance claim relates to damage to your property, that involves a whole separate set of complications and difficulties. By working with an insurance claims lawyer, like Solnick Lawyers, you can ensure that you understand your rights and that you get what you are entitled to by law.
Solnick Lawyers has been representing victims of bad faith by insurance companies in the Greater Philadelphia area, and throughout Pennsylvania and New Jersey, for more than 20 years. We are not intimidated by the tactics of aggressive corporations, insurance companies, or government agencies. We face them daily in negotiations and courtrooms to secure justice for our clients, and we will do the same for you. Solnick Lawyers is on your side. Contact us today for a free consultation.
If an insurance company has acted in bad faith toward you or a loved one and you would like to know more about your legal rights, please contact us today by calling 215-481-9979 or via our website to schedule a free consultation and case review. You have nothing to lose and everything to gain as we never charge a fee until and unless we obtain a settlement or award for you. Solnick Lawyers is on your side. Let us fight for you.
To prove a bad faith claim in Pennsylvania, the insured must show that the insurer did not have a reasonable basis for denying benefits under the policy or that the insurer knew and disregarded its reasonable basis for denying the benefits.
A plaintiff may be eligible to recover interest on the amount of a claim from the date the claim was made. Plaintiff may also be eligible for punitive damages, as well as costs and attorneys’ fees.
If you suspect your insurance company is acting in bad faith, retain all correspondence from the company, and immediately contact an attorney who can advise you of your rights.
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