Insurance Bad Faith
“Bad faith” is the legal term lawyers use to describe the intentional, malicious, or wrongful refusal of an insurance company to perform some duty or contractual obligation. In a nutshell, “bad faith” is when an insurance company does not treat the policyholder fairly and as a result the policyholder is denied benefits that are legally and contractually owed pursuant to the insurance policy.
When you buy insurance, you are simply buying a promise from the insurance company to pay claims covered under the specific policy of insurance for which you pay premiums. The types of claims and benefits covered are often complex and confusing, and it is all too easy for an insurance company to take advantage of its policyholders who trust the insurance company to help them trough a very difficult time in their lives. When this trust is betrayed, an insurance company has committed “bad faith”.
When they are trying to get you to buy insurance, insurance companies spend millions of dollars making you think that you are in “good hands” or that they are your “good neighbor”, but when it comes time to pay for your claim, all too often people realize the truth about insurance. The truth is insurance companies do not make billions of dollars every year by paying claims. Insurance companies are highly skilled in how to avoid paying valid claims.
Most of the time, the insured does not know he/she is being treated unfairly. The insured is at a disadvantage when dealing with a trained and knowledgeable insurance adjuster whom he/she assumes is looking out for him/her.