The well-known American insurance providers such as Allstate, Geico, AAA, Progressive and others, claim they can keep you and your family in safe hands. Sadly, their pasts often paint a different picture.
Insurance companies are businesses just like bakeries, automotive sellers, restaurants, and other businesses around our country. They’re in the business of making profits. And one way they can maximize their earnings is by paying out as little as possible in insurance claims. Not many people think that more can be done to maximize their compensation following a serious injury or accident. Our Macon personal injury attorneys understand how insurance companies work and are here to help victims of serious accidents recover what they’re owed. Click here to learn more!
Because insurance providers want to pay out as little as possible, they’ll often make rapid attempts to offer a cheap settlement to victims of serious accidents. In many cases, the victims take these offers. They may have not been offered or had as much money as these insurance companies are offering and jump on the opportunity. This can be a mistake in many cases.
Working with a personal injury attorney can help ensure insurance companies are not “low-balling” settlement offers and you get what you deserve. An attorney can help research, investigate, and compile all expenses incurred to maximize the settlement one receives. While this does take time, it can prove beneficial in the long run.
Indications that an Insurance Provider Is Acting in Bad Faith
People who have previously filed an insurance claim could find that their insurance provider gives them the runaround after doing so. It’s possible that this is a warning sign and the start of an insurance claim made in bad faith.
Here are several indications that your insurance provider may not be acting in good faith while dealing with you:
- Putting off, discounting, or refusing to make payments without providing a valid explanation.
- Refusing to pay out on a claim without providing a fair explanation or doing so on the basis of information that is either false or erroneous
- Inability to confirm or deny a coverage claim within a time frame that is considered to be acceptable
- Making an offer to settle a claim for a sum that is too low
- Demanding excessive paperwork requirements that aren’t necessary by the policy, which can be cumbersome.
- Using investigation methods that are invasive or annoying, so causing the insured to become a victim.
- Carrying out an inquiry while maintaining a partial prejudice
- Withholding information about claims on purpose or making false representations of them
- Failure to advise an insured of the terms and benefits covered by a policy, is considered a violation of the policy.
- Issuing threats to pay claims that are not justified.
- advising or pressuring an insured person not to get legal representation.
- Increasing a claimant’s premium by a substantial amount when there was no indication that the claimant caused the increase in premium
- The practice of terminating an insurance coverage even when the claimant was not at fault
- Interpreting the terms of the policy in an unreasonable manner
- Intentionally distorting the injury law in order to further the interests of the insurance company
- A practice that involves intimidating, harassing, or otherwise improperly persuading an insured person not to file a claim.
A lack of good faith on the part of an insurance company could be demonstrated in more ways in addition to those that have been stated above. In a nutshell, an insurer with good faith looks for methods to accept valid claims and makes fast payments on such claims. An insurer with poor faith will look for methods to deny, underpay, or postpone legitimate claims in any way they can.
Your insurance company owes you a duty of care
Insurance providers must operate in good faith with their insureds, as required under Georgia law. Insurance firms and their insured are involved in a “fiduciary” relationship, which explains why this need exists. Therefore, while upholding the responsibilities imposed by the agreement that binds them, each party should do so in good faith and with due care (e.g., the insurance policy). When an insurance provider delays, withholds or rejects benefits based on legitimate claims, that provider violates this fiduciary duty and engages in bad faith behaviour.
Insurance firms must adhere to the following legal fiduciary duty to behave in good faith:
- Answer claimants’ queries and questions promptly.
- With reasonable promptness, pay or reject any claim.
- Each claim denial’s justification should be stated.
A claim cannot be unfairly denied or delayed by an insurance provider, nor can it be processed with excessively high administrative difficulties. There are further instances in which an insurance provider may treat an insured in bad faith. A lot of these circumstances are determined by the kind of insurance policy you have and the specifics of your claim.
What exactly does a lawyer for insurance companies do?
A consumer or an insurance company might hire an insurance lawyer to represent their interests. Both modes of representation are very distinct from one another. Despite this, they continue to implement a significant number of fundamental techniques.
The following are examples of duties performed by an insurance lawyer:
- Acquire and investigate the relevant facts of the case.
- Determine who is at fault and make them answer for their actions.
- Find out how much your insurance claim is really worth.
- Conduct research on the relevant federal, state, and local statutes.
- Take care of the client’s side of the bargaining and communication responsibilities.
- If it turns out to be required, represent the client’s interests in civil court.
- Clients should be provided with continuing legal guidance.
The only expert who can offer counsel or an opinion on legal matters is an insurance lawyer.
Injured? Call Today!
Don’t take the initial settlement offer from an insurance company. Consult with an lawyer to ensure your rights are protected, your compensation is maximized, and you can get back on your feet.