Bad Faith Insurance Claims

We trust insurance companies to have our backs when times get tough, paying into coverage for injuries, fires, burglaries, car accidents, weather damage and more. We pay into that coverage every month, year after year, so that when we need it, we can access the resources to rebuild, repair, or recover.

Unfortunately, when you go to do just that and make a claim on a policy, insurance companies do not always live up to the trust you have placed in them.

What Is Bad Faith Insurance Behavior?

In Florida, insurance companies must act in good faith when they make claim determinations (including denials!). In other words, the company and its representatives must act fairly and reasonably in accordance with the rules set by law. They must never deprive a policyholder of the benefits they deserve.
This duty to act in good faith protects all of us from unfair, financially motivated insurance claim denials. After all, if they could, insurance companies would never approve claims, as each one they do costs them money. Examples of bad-faith insurance companies’ behaviors include the following:

• Trying to rescind or revoke an insurance policy without lawful reasons or procedures
• Incorrectly applying a policy exclusion to a legitimate claim
• Intentionally delaying payments to a disabled worker
• Denying a claim that clearly meets the policy’s requirements
• Failing to properly investigate a claim
• Failing to communicate with an insurance claimant
• Making unreasonably low settlement offers as well as pressuring the worker to accept it without help from a lawyer
• Misrepresenting the terms and conditions of your insurance policy

Careful, bad faith insurance laws do not mean that an insurance company cannot ever deny your claim. They can, and there is a good chance they wil try to do sol. However, these laws require them to treat you fairly and respectfully, follow their policy terms, and comply with both state and federal laws.

What Is A Bad Faith Insurance Claim?

Sometimes, bad faith is isolated. An insurance adjuster could be a “bad apple” who ignores the insurance company’s policies and procedures. In these cases, a quick call from your lawyer to the adjuster’s supervisor might remedy your problem. However, at other times, the bad faith is more concerted and systemic, becoming part of the company’s policy and behavior. In these cases, you’ll need to pursue legal remedies in court.

When your insurance company proceeds with a bad faith denial or any other bad faith behavior (such as delays), you can make what is called a bad-faith insurance claim to hold them accountable and obtain both the original benefits you needed and additional compensation.

Bad-faith dealings can arise in any type of insurance claim, including disability, life, and liability. If you believe your insurance company has acted in bad faith, you can consult with a lawyer at the CJ Henry Law Firm as soon as possible. Even if their denial was not in bad faith, we may be able to contest and appeal it.

Why File A Bad Faith Insurance Claim In Florida?

Under Florida laws, insurance companies have to pay or deny a claim in a reasonable amount of time, evaluate the claim fairly, and cooperate with you throughout the entire process. If any of these do not happen, then a bad-faith insurance claim could help you receive compensation that includes:

• Payment of your underlying insurance claim
• Compensation for your emotional distress
• Punitive damages
• Attorney’s fees
• Other damages caused by the insurance company’s behavior

It is worth noting that Florida’s bad faith laws do not apply to all disability claims. ERISA claims, for example, are handled under specific federal rules that exempt them from this particular legal clause. For an evaluation of your disability insurance dispute and to see if bad faith applies, contact a disability attorney at CJ Henry Law Firm.

Why Are Many Disability Denials Not Eligible For Bad Faith Claims?

Florida law prohibits bad-faith insurance behavior, but the Employee Retirement Income Security Act (ERISA) of 1974 is a federal law that regulates employer-sponsored benefit plans, such as company-funded pensions, disability insurance, and health plans.

ERISA preempts and overrides state laws. This means that you cannot file Florida bad faith insurance claims when the misconduct is linked to an ERISA plan. This does not, however, mean that you should put up with unfair treatment or unjust denials.

There are other legal remedies under federal law, as well as appeals and litigation that can be filed to contest disability claim denials under ERISA. For more information or to find out whether ERISA covers your insurance policy, contact a bad-faith insurance claims attorney at our office today.

Regain Control Of Your Claim With Help From A Lawyer

As your disability and bad faith insurance claim lawyers, we will help you navigate your insurance or disability claim and protect your legal rights throughout the claim process. This means that as your lawyer, we will:

• Advocate for the payment of benefits and potentially negotiate a settlement.
• Compile, analyze, and present evidence that supports your claim.
• Help you complete forms and correctly respond to insurance company requests for information, avoiding potentially costly mistakes.
• Educate you about your rights and how to protect yourself from surveillance and insurance company abuse.
• Handle communication with the insurance company, ensuring that they meet their legal duties.
• Inform you of your appeal rights and options (if necessary).
• Monitor your claim for bad faith dealings.

Without legal counsel, it’s easy to make mistakes during complex procedures such as insurance claims, appeals, and bad-faith lawsuits. Unfortunately, a single misstep can result in lost compensation, delays, and unnecessary litigation. Moreover, insurance companies frequently try to take advantage of unrepresented claimants.

Insurers assume that you don’t know your legal rights, can’t interpret the complicated language in the plan documents, and won’t seek help. Don’t prove them right and get cheated out of your benefits. Consult with an insurance law attorney early on in your claim!

Do Not Let Them Make You A Victim: Schedule An Appointment To Discuss Your Insurance Claim Denial Or Delay

Bad-faith insurance claim denials are more common than you think. Too frequently, our disability lawyers see disabled workers who were unfairly and improperly denied benefits. Workers who need our help to fight for their compensation.

If you believe your insurance claim was not properly investigated, or if your claim was denied without a valid reason, you may be able to sue, and we will gladly help you do so. Contact the CJ Henry Law Firm as soon as possible if you believe that you or a loved one were denied insurance benefits in bad faith. Our skilled team will carefully interview you, assess your claim, and help you build a strategy to address the insurance company’s bad faith.

Consultations are always free.

To request a meeting to discuss a suspected bad-faith denial or any other insurance or disability matter, simply call (352) 204-8479 or complete our online contact form.