Bad Faith Insurance Practices: Recognizing and Responding to Tactics

When you hold an insurance policy in West Virginia, you have certain rights under the law. The insurance company cannot handle your claim in any way they choose. If they violate the law, you can hold them legally accountable, filing a legal action against them for damages. These claims can be worth a considerable amount of money. You must spot the signs of insurance bad faith so you are prepared to act.

Always contact a bad faith insurance attorney if you think you are getting a runaround from the insurance company. Many people might believe they experienced bad faith when, in reality, it was simply a frustrating process. The right law firm can identify when bad faith occurs and you have a possible claim against insurers.

What Is Bad Faith in West Virginia?

In West Virginia, the law regarding insurance company bad faith claims can be confusing. For example, bad faith may fall under the West Virginia Unfair Trade Practices Act. Several insurance company tactics are prohibited under the law, including:

• Misrepresenting the terms of the policy to a consumer
• Denying a claim without an investigation or a reasonable basis to do so
• Delaying a claim for an unreasonable amount of time
• Not making a settlement offer when there is clear evidence of liability
• Making a very unreasonable settlement offer
• Making unreasonable demands for documentation to accompany your claim

The insurance company may engage in these practices at any point in the claims process. They might begin by taking too long to respond to your initial claim. You may be shocked when you learn that the claim you expected to be paid was denied or that the settlement offer was shockingly low.

Insurance Companies Tries to Push the Limits

For the insurance company, minimizing claims and taking advantage of claimants may simply be how it conducts business. These companies want to keep as much of its premiums as possible to maintain profits, and they make less money when they promptly pay claims for their full value. The insurance company counts on you now knowing your legal rights. When you have paid your insurance premiums, you have a contract with the insurance company that they must fully honor. Anything less can not only be a breach of contract, but it can also rise to the level of bad faith.

You Can Hire an Insurance Bad Faith Lawyer to Help You

You can push back when the insurance company is breaking the law, but it may not be so easy to do on your own. First, you may not know exactly what conduct is against the law.

Second, the insurance company may not be responsive when dealing directly with you because adjusters think there is little to fear. If the insurance company does not know there might be consequences for its actions, adjusters will continue to see what they can get away with and push the envelope.

With the help of an insurance claims attorney, you can fight for your legal rights. The insurance company may back off when they see that you have hired an attorney. An informed claimant is one who can hold them accountable, and they might begin to understand that you mean business. Just the mention of bad faith can persuade the insurance company to change its behavior.

You Can Sue the Insurance Company or Threaten a Lawsuit

If the insurance company has wrongfully denied your claim entirely, you can proceed with a breach of contract lawsuit. If you believe the denial was egregious, you can add bad faith to your complaint. Then, not only will the court decide whether your claim should be paid but also whether you deserve damages directly from the insurance company.

If the issue relates to the underpayment of your claim or insurance company practices in the settlement process, you can always take your case to court. Although the aim is to settle the claim with the insurance company, you can always take matters out of their hands and place them into the court’s.

Potential Damages in an Insurance Bad Faith Lawsuit

If you file and win a bad faith lawsuit, your damages will be directly from the insurance company. Bad faith damages do not replace your claim. These are paid in addition to any other money you are owed for the underlying insurance matter. If you win a bad faith lawsuit, you can be eligible for the following in compensation:

• Emotional distress damages that you have suffered
• Financial losses that you have sustained because of the insurance company’s conduct
• Attorney’s fees
• Punitive damages, if a jury deems the insurance company’s conduct to be egregious

Punitive damages are what really frightens an insurance company. The legal standard set by the United States Supreme Court regarding punitive damages arose in a case involving insurance company bad faith, where the defendant was initially ordered to pay a nine-figure award by the jury.

To be clear, there is a fine line between normal insurance company practices and bad faith. Companies are presumed to act in good faith unless you can prove otherwise. There is a relatively high bar to prove bad faith in a court case, but it is certainly possible. If the insurance company has broken the law, you can and should hold them legally accountable. The insurance company does not get the final word, and a court can punish them for abusive tactics.

Contact a Morgantown Insurance Bad Faith Attorney Today

The Desai Law Firm fights for the rights of policyholders when they are dealing with unfair and wrongful insurance company practices. You can count on us being in your corner when the insurance company is either stonewalling or acting illegally.

The first step you need to take to get an insurance bad faith lawyer on your side is to call us today at (304) 974-1974 to schedule a free initial consultation. When you are out of answers, we can explain your options and take up the fight for you.