Statutory Bad Faith Claims
It is possible for a lawsuit involving insurance bad faith to involve statutory law. With a statutory claim, it is based on the laws made by the legislature of the state. There are laws by states put in place to protect insurance policyholders from insurance companies that engage in deceptive or unfair practices. These laws provide details about specific actions that are prohibited by insurance companies. At Aizenman Law Group we know how to use these laws to provide remedies for a policyholder who is the victim of insurance bad faith.
First Party Bad Faith Insurance Lawsuits
This involves an insurance company's refusal to pay a claim to a policyholder. This can happen when a policyholder contacts their insurance provider about a claim. An insurance company alleges they are not able to pay for any repairs until the claim is investigated. The insurance company makes no effort to investigate and confirm the policyholder's claim. This could be a reason for a policyholder to file a first-party bad faith insurance lawsuit.
Third Party Bad Faith Insurance Lawsuits
When an insurance company has bad faith behavior with a third party, it often involves liability insurance. An insurance company owes a duty to defend, as well as pay all the costs involved with a legal defense for a particular type of lawsuit. An insurance company must pay up to the limits provided in the policy.
What Damages Are Recoverable?
Should an insurance company be proven to have acted in bad faith, it can be held liable for damages above the limits of a policy. These damages could include
- Statutory penalties
- Attorney's fees
- Consequential economic loss
- Emotional stress
- And more
They could also be required to pay punitive damages. The amount of these damages will be determined with regard to a policyholder’s losses but also the wealth of an insurance company.
This is the duty of an insurance company to pay any judgment made against their policyholder. It must be done up to the limit of the coverage of the policy. An insurance company's duty to indemnify exists for any omission or act listed as covered in the insurance policy. This will require a summary judgment in the policyholder's favor or a trial's factual record showing how much of a plaintiff's claim is covered by their policy.
How an Insurance Bad Faith Lawyer Can Help
An insurance company will often pay close attention to a bad faith accusation put in writing. If the accusations appear to be true, it could quickly initiate a change in the position of the insurance company's adjuster when it comes to providing a settlement. Insurance companies know if it can be proven they acted in bad faith, the company may be required to pay damages at an amount much higher than a policy’s compensation amount.
In most cases, when settlement negotiations take place, the slightest possibility of an accusation of bad faith can help the process. It could motivate an insurance company to see the benefits of providing a reasonable settlement.
Should anyone believe they are the victim of an insurance company acting in bad faith, they should contact the Aizenman Law Group. We are legal professionals with the knowledge and experience to analyze an insurance claim situation. Our Tulsa insurance lawyers know how to negotiate a fair settlement from an insurance company and will not refuse to fight for your rights in court.