So I’ve got this claim that I’m sure is legit, but my insurer is dragging their feet and won’t pay up. They said something about the contract terms, but IDK if they’re just trying to avoid paying. Anyone know what qualifies as ‘bad faith’ from an insurance company?
Yeah, sounds like bad faith to me. If they’re misrepresenting the contract or not investigating your claim properly, that’s bad faith. It happens when they refuse to meet their obligations like paying or investigating a legit claim.
@Ari
Exactly, and they also have to explain why they’re refusing the claim. If they haven’t given you a good reason, you might want to talk to a lawyer.
@Ari
Good point. They didn’t explain anything clearly, just said ‘contract issues.’ Guess I’ll start looking for legal advice.
Bad faith isn’t just about mistakes, though. If the insurance company made an honest mistake, they just have to fix it and pay the claim. But if they’re purposely avoiding it… that’s a whole different story.
@Fern
Totally. Like, if they’re ignoring evidence that supports your claim or not giving you a legit reason for denial, it’s bad faith. Otherwise, a mistake isn’t enough to sue them for it.
Marin said:
@Fern
Totally. Like, if they’re ignoring evidence that supports your claim or not giving you a legit reason for denial, it’s bad faith. Otherwise, a mistake isn’t enough to sue them for it.
Gotcha. I think they might be doing it on purpose, though… just feels off.
FYI, some states have laws to protect people from bad faith practices. In California, for example, insurance companies can be forced to pay more than just the claim if they’ve been shady about it.
Uma said:
FYI, some states have laws to protect people from bad faith practices. In California, for example, insurance companies can be forced to pay more than just the claim if they’ve been shady about it.
Yep, and sometimes the jury can award you extra money if the insurance company is really bad about it—like, beyond just not paying. Punitive damages, I think they call it.
@Zion
Exactly! It’s meant to stop them from doing the same thing to other policyholders.
If they’re refusing to look at evidence that supports your claim, it’s 100% bad faith. They have to investigate claims fairly, not just look for ways to deny them.
Marin said:
If they’re refusing to look at evidence that supports your claim, it’s 100% bad faith. They have to investigate claims fairly, not just look for ways to deny them.
Yeah, that’s what they seem to be doing. They’re only focusing on reasons not to pay.
I would definitely talk to a lawyer if I were you. Bad faith insurance can be tricky, but if they’re dragging it out or refusing to explain things, it’s worth looking into.