Every policyholder expects their insurance provider to handle their claim in good faith and in compliance with the law. However, what if your insurer wrongfully denies your life insurance claim? When your insurance company goes against the law, breaches the duty of good faith, and deals with you unjustly, know they’re acting in bad faith.
If you believe your life insurance was wrongfully denied, you as a policyholder have the right to investigate whether the insurance firm engaged in bad faith actions. Here are the most common signs you should look out for:
Lack of Communication
If an insurer fails to respond to its policyholders after they file a claim, they may be attempting to breach their fiduciary duty. An indication of insurance bad faith might be a failure to investigate or even acknowledge receipt of documentation from insured clients. The law requires insurance providers to keep in close contact with their policyholders, and this should be a simple process. Together, they need to be open to inquiries, give satisfactory responses, and be willing to share relevant data to settle claims as soon as possible.
Wrongfully Denying a Claim Without Cause
Insurers operating in bad faith can refuse to pay claims with the expectation that their policyholders will give up and accept the insurer’s decision. If you’ve been wrongfully refused coverage, you’re entitled to filing an appeal. If the insurance company denies your claim, they must have an explaination.
Unreasonably Delaying Death Benefit Payments
Delayed payments is another tactic most insurance companies adopt to reduce the compensation they pay to clients. The more they delay, the bigger the buildup of your expenses. Insurance companies believe you’ll surrender because of an urgency and settle for much less compensation than you deserve. Also, insurance companies prolong payments since they earn interest on the money. Once they pay back the money, it’ll no longer help them earn interest.
Changing or Canceling Your Policy
Although most insurance providers are reliable and would not attempt to evade their legal duty to pay, some maybe unethical. Once a claim has been filed, an insurer may hunt for a loophole to avoid paying. Insurers have been known to change policies in an attempt to argue that they’re not obligated to pay a claim. If the insurer begins fact-checking the information you gave when purchasing a policy after filing a claim, they might be digging for mistakes to cause you trouble.
Contact a Life Insurance Attorney to Help
Having a skilled and experienced legal team at your side is essential when dealing with an insurance company acting in bad faith. Your life insurance lawyer can help you communicate with the insurer and negotiate for fair compensation. If that doesn’t work out, an experienced lawyer can also put your case in court and help you win.
If you want to fight for your rights with the insurance provider, we’re here to help you. Get in touch with our legal team without any delay.