Insurance Bad Faith In Port Arthur
Insurance companies in the state of Texas owe several duties to policyholders including a duty of good faith and fair dealing. When an insurance company fails to treat policyholders fairly, the insurance company is considered to have acted in bad faith. Not only are bad faith insurance acts unethical, in many cases these incidents are also illegal under the Texas Deceptive Trade Practices Act.
The Rights Of Insurance Policy Holders
Bad faith insurance claims can arise for any type of insurance policy but two of the most common types of cases involve either motor vehicles or home insurance policies. Insurance policyholders who have faithfully paid premiums and complied with insurance provisions owe a duty to be paid in accordance with the terms of an insurance policy.
Ways That Port Arthur Insurance Companies Act In Bad Faith
Determining that an action by an insurance company constitutes bad faith can prove challenging. Often the fact that an insurance company denied a claim simply due to a mistake or error while assessing insurance coverage is not sufficient behavior to qualify as bad faith. Instead, the insurance company’s act must constitute something more than a simple error.
Many insurance companies in Texas, however, implement written company policies which distinguish particular cases in which a policy adjuster has acted in bad faith. These guidelines can prove helpful in demonstrating that an act of bad faith has occurred.
Some of the common ways in which a Port Arthur insurance company can act in bad faith include the following:
- Denying a claim that should have been covered.
- Failing to defend against lawsuits.
- Failing to investigate an insurance claim.
- Handling a claim with undue delay.
- Inadequately investigating a claim.
- Misrepresenting how insurance provisions cover an issue.
- Not promptly communicating issues with a policyholder.
- Paying a client less than a policy states.
- Refusing to reach a reasonable settlement.
- Underestimating loss evaluations.
- Unreasonably interpreting a policy.
- Withholding undisputed funds.
Compensation For Bad Faith Insurance Cases
Successful bad faith insurance cases can result in not just compensation for the original insurance claim but also additional damages. These additional damages can include consequential damages incurred as a result of the bad faith act, compensation for emotional distress caused by the claim denial, and in some cases punitive damages which are designed to punish insurance companies that intentionally or recklessly harmed a policy holder.
The Benefit Of A Port Arthur Bad Faith Insurance Attorney
There are several strategies that an experienced attorney will implement in helping a client respond to a bad faith insurance claim including: discussing the issue with an insurance company supervisor, sending an official letter to an insurance company regarding the matter, filing a complaint with the Texas Department of Insurance, and pursuing the issue through a court of law.