When you purchase an insurance policy, the insurance carrier is obligated by law to act in good faith. Good faith practices mean that when you file a legitimate insurance claim, insurance companies are required to make reasonable effort to compensate you. An insurance company can deny a claim only after they have conducted a fair and reasonably thorough investigation and come to the conclusion that your claim is not covered by your insurance policy.
However, if an insurance company denies your claim without having it properly investigated, or if they act unreasonably, it is possible that they have acted in bad faith. Bad faith practices can include denying a claim without giving reason, failing to conduct a reasonably thorough investigation or offering you less money than you know your claim is worth. Bad faith can apply to any type of insurance policy: car insurance, health insurance, life insurance, etc.
If you believe that your insurance company has denied your claim in bad faith, you will need to appeal their denial. Your option to appeal is available to you even if your insurance company acted in good faith. Most insurance companies have an appeals process available for their customers to use in order to get the company to reconsider their claim.
You may also need to file a lawsuit against your insurance company if they deny your claim in bad faith. This can result in punitive damages being added onto your settlement due to the fact that the insurance company has acted unfairly in denying your claim. However, bad faith claims can be difficult to prove. Therefore, if you feel that your insurance company has acted in bad faith, you need an experienced personal injury attorney to help you navigate the complicated legal process of filing a lawsuit against an insurance company.
If you were inured due to the negligence of another person, his or her insurance company is required to act in good faith toward you. If that insurance company engages in fraud or otherwise tampers with evidence in order to avoid paying you compensation for your injuries, it is imperative that you contact a personal injury lawyer.
No matter how you were injured, a car accident, medical malpractice, a defective product or otherwise, an insurance company is required to act in good faith. If you need to file a lawsuit with an insurance company, contact the experienced Chicago injury lawyers from Nemeroff Law Offices at 312.629.8800.