Los Angeles Insurance Bad Faith Attorney
Contract Breach? Denied Claim? Call 213-489-1600
Even though insurance customers have signed written policy agreements with their providers, those are broken by insurers all the time. When this happens, it is called “insurance bad faith” and is in violation of their duty, which is known as the “implied covenant of good faith and fair dealing.” This term is unique to United States law, and it means that the insured person can file against their insurance company for any alleged corrupt acts done to them.
Why Choose Our Insurance Bad Faith Lawyers?
- 40+ Years of Representing California Policyholders
- Top-Rated Ethical Standards and Legal Skill (AV Preeminent® Rating)
- Free Consultation to Discuss Your Legal Options
- Successful Results Against Even the Biggest Insurance Companies
Ready to fight back against insurance bad faith? Call 213-489-1600 today.
Common Types of Insurance Bad Faith
Policyholders can not only file a tort claim, but also a breach of contract claim. This occurs quite commonly after fraudulent activity from insurance companies, and nearly 1,500 organizations have been taken off federal programs because of their abuse toward the insured individuals. Insurance companies that are found to be acting in bad faith may also be forced to pay punitive damages for their misconduct.
Examples of broker negligence and bad faith in the insurance industry include:
- Underpayment of claims
- Denying a claim for profit
- Failure to pay claims
- Delaying payment of claims
- Lack of claim investigation
- Cancelling claims
These providers commit this illegal activity because it is beneficial to them financially and it seems like an easy way to defraud individuals without them knowing it. The law has been cracking down on insurance companies who are clearly acting in bad faith since they limit or deny claims for their policyholders without justification or proper notification. In the eyes of the law, no insurance company can enter into a contract without the intention of fulfilling their half of the agreement.
Know Your Rights As a Policy Holder
Many policyholders do not adequately read through their Explanation of Benefits (EOB) form when they first sign on with a company. According to the Coalition Against Insurance Fraud, almost 70 percent of EOB forms are too confusing for people to decipher, and 40 percent of Americans do not understand them or their medical statements. Insurance companies are not slow, and they know that these documents are confounding.
Once an insurance company enters into a contract with a policy holder, they must do the following:
- Provide the coverage that is detailed in the contract
- Act in good faith
- Hold the insured’s interests at the same level as their own
Violating the rights of the insured is clearly illegal, and a qualified insurance attorney from Gianelli & Morris can help you seek justice for your case. If you enter into an insurance bad faith lawsuit and your claim is proven, then you will be rewarded with restitution for damages and money for attorney fees as well.
What Constitutes Insurance Bad Faith?
Simply put, an insurance company has a duty to act in good faith. This means that they must not evade their obligations to investigate the claim you filed or pay you the compensation you deserve. If they attempt to escape from these responsibilities, it will likely be classified as bad faith.
Some of the reasons that an insurance company can get sued for bad faith includes:
- Unwarranted denial of your coverage
- Failure to disclose the policy limits
- Failure to respond in a timely manner
- Failure to come to a fair and reasonable settlement when liability is clear
- Failure to confirm or deny coverage within a reasonable timeframe
Our Los Angeles Insurance Attorneys Can Help
Do not let another day pass without seeking legal help from an insurance lawyer. Bad faith is a severe issue that many people may not even realize is affecting them. Proving insurance bad faith can be very difficult, which is why you need an assertive legal advocate in your corner.
At Gianelli & Morris, we have represented policy holders since 1979 and have seen positive results time and time again. We have extensive experience with cases of this nature, and we can help you determine if you have a valid bad faith case and decide how to go about it. We are prepared to go up against even the largest insurance companies to fight on your behalf.
If you are not receiving money owed to you or are being denied medical services, call one of our attorneys at Gianelli & Morris today!