Bad Faith Insurance

“Bad Faith” defined, is the fraudulent deception of another person; the intentional or malicious refusal to perform some duty or contractual obligation.  This term is used often in relation to insurance companies.  They, by law, are expected to act in good faith and fair dealings with the people they insure.  Unfortunately, that is not always the case.  Some insurers deny legitimate claims without a valid reason.  This is called Bad Faith Insurance.

These types of insurers will try to wear you down.  They want you to feel like you have no recourse, and hope that you will ultimately give up.  Some bad faith tactics include:

• An attempt at refusing to pay all or part of your medical bills
• Delaying investigating your claim
• A twenty-four month limitation on benefits for mental and nervous conditions
• Knowingly applying the wrong legal definition of disability when denying claims
• Purposely targeting high cost claims for denial
• Misuse of claimant’s medical records

Luckily, the insured does have recourse when it comes to bad faith insurers.  If this happens to you, write your State Department of Insurance.  Every state has one.  Go to their website, find the right representative, file a complaint in writing, and get confirmation that it is on record.  Keep a record of all dealings with your insurance company.  Keep a paper trail.  Also, exercise your rights and request copies of your medical records.

You should also contact an attorney that has experience with bad faith insurers.  You may be able to sue your insurance company on a tort claim.  Not all disputes with insurance companies fall into the “bad faith” category.  Insurers are allowed to question and investigate claims, but an experienced attorney will be able to determine if you are entitled to compensation for punitive or exemplary damages.

Just recently, MBC attorneys Steve Bulzomi and Jeremy Johnston a verdict was received against an insurance company in a claim for underinsured motorist benefits for injuries received by one of our clients.   The case isn’t over yet. The insurance company’s failure to put the interests of its insured, ahead of its own has exposed it to liability under Washington’s Insurance Fair Conduct Act. The handling of this claim typifies the company’s approach to many meritorious cases.   MBC looks forward to holding them  accountable.