Bad Faith Insurance Tactics
When you purchase a health or life insurance policy, you expect the insurer to uphold its promise and pay out claims promptly and fairly. Unfortunately, this is not always the case. Many policyholders find themselves in a frustrating battle with their insurance companies over unreasonably delayed or denied claims. At Gianelli & Morris, we represent California policyholders whose claims have been mishandled in bad faith. See below for a discussion of some common bad faith insurance tactics, and contact our office in Los Angeles if you’ve been victimized by bad faith insurance tactics in California.
What Are Bad Faith Insurance Tactics?
Bad faith insurance tactics refer to unethical or illegal actions by insurance companies to avoid paying out legitimate claims. These practices are prohibited under California law, specifically under the California Insurance Code Section 790.03. Insurance companies engaging in such tactics can be held accountable and subject to penalties.
Bad faith insurance tactics can take various forms, including but not limited to:
Unreasonable Delays
Insurance companies are required to process and settle claims within a reasonable time frame. Delaying a claim unnecessarily can cause financial and emotional distress to policyholders who rely on timely payouts for medical treatments or to support their families after a loss.
Denying Claims Without a Valid Reason
An insurance company must provide a legitimate reason for denying a claim. If a claim is denied without proper justification or investigation, it may be an instance of bad faith.
Misrepresenting Policy Provisions
Insurance policies can be complex and filled with legal jargon. Insurers sometimes take advantage of this complexity by misinterpreting or misrepresenting policy provisions to deny or reduce claims.
Failing to Conduct a Thorough Investigation
Insurance companies are obligated to conduct a full and fair investigation of claims. Failing to do so can lead to unjust claim denials or delays.
Retaliation Against Policyholders
Some insurers unlawfully engage in retaliatory actions against policyholders who file claims or complaints. This can include raising premiums or canceling policies without just cause.
Legal Protections Against Bad Faith Insurance Tactics
California law provides several protections for policyholders against bad faith insurance tactics. The California Department of Insurance (CDI) enforces these laws and regulations. If you believe your insurance company is engaging in unfair practices, you can file a complaint with the CDI. Additionally, you may have the right to pursue a bad faith insurance claim in court with the assistance of a skilled California insurance law attorney,
The CDI investigates complaints against insurance companies and has the authority to impose fines and penalties for violations. The department also provides resources and assistance to policyholders navigating disputes with their insurers.
A bad faith insurance claim is a legal action taken against an insurer for violating its duty to act in good faith and fair dealing with policyholders. To succeed in a bad faith claim, you must prove that the insurer’s actions were unreasonable and without proper cause. Successful claims can result in compensation for the denied benefits, emotional distress, and punitive damages.
How Gianelli & Morris Can Help
At Gianelli & Morris, we have extensive experience representing policyholders in disputes with their insurance companies. It’s basically all we do. Our team understands the tactics insurers use to deny or delay claims and how to counter them effectively. We are committed to holding insurance companies accountable and ensuring our clients receive the full benefits they are entitled to under their policies. You can count on us for the following:
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Comprehensive Case Evaluation: We begin by thoroughly reviewing your policy and claim history to identify any instances of bad faith or unfair practices.
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Strategic Advocacy: Our attorneys develop a tailored legal strategy to address your specific situation, whether through negotiation, arbitration, or litigation.
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Aggressive Representation: We are dedicated to vigorously representing your interests and pursuing the maximum compensation available under the law.
We have successfully represented numerous clients in bad faith insurance claims, securing significant settlements and verdicts for individual policyholders and through class actions. Our impressive track record demonstrates our ability to navigate the complexities of insurance law and achieve favorable outcomes for our clients.
Contact Gianelli & Morris for Help Battling Bad Faith Insurance Tactics in California
Bad faith insurance tactics undermine the trust policyholders place in their insurance companies and can have severe financial and emotional impacts. If you believe your insurer is engaging in unfair practices, call Gianelli & Morris at 213-489-1600 for a comprehensive evaluation of your case. Our experienced attorneys are here to help you fight for the benefits you deserve and hold your insurance company accountable.
