You count on your insurance company to be there when you need them. You are paying into the policy in case something catastrophic happens. When it does, you expect the insurance company to make the appropriate payout.
But what if your insurance company acts in bad faith? Not all denials are examples of bad faith, but they can be. It is important to know how this may work, so let us take a look at three examples.
Baseless denials
First and foremost, even if a claim is denied, there needs to be a legitimate reason. A baseless denial for no reason at all could be an example of bad faith insurance practices. They are just turning you down in hopes that you will not contest the decision, not because there is a valid reason to do so.
Unreasonable delays
Next, the insurance company should work with you in a reasonable fashion, returning your communications and authorizing payouts in a relatively prompt manner. This does not mean it all has to happen immediately, but unreasonable delays may be an example of bad faith practices.
Misrepresentation of the policy
In some cases, you may feel that the insurance company has misrepresented your policy, perhaps to tell you that you are not eligible for a payment that you do deserve. They need to be honest in their interpretation of the policy and not try to defraud you by intentionally misrepresenting it in their own favor.
If you do feel that your insurance company has been acting in bad faith, it may be time to look into all of the legal options at your disposal.