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How to combat your bad faith dispute

Author: Nadine Swayne
Published: Jan 7 2014

You may find it challenging to deal with an insurance company after a mishap. Because the payments don’t come directly from the company, you may find the actual insurance provider to have sketchy dealings. This bad faith can prove stressful and financially crippling for your family, especially when bills are mounting, and you have no way to cope.

Bad faith dispute

What Is Bad Faith?

Bad faith is a term used when an insurance company acts in an unethical manner purposely against individuals who have filed claims with their company. Insurance companies have guidelines and standards in place that they must follow in good faith for those who do business with them. In today’s competitive world of business, not all companies abide by this level of fairness. When they fail to provide the ethical treatment towards their insured clients, they could be facing legal issues that could damage their reputation.

An example of bad faith includes an insurance provider denying a claim that they know is legitimate, and they should accept. Bad faith can also include paying out compensation to an insured when they know that it’s substantially less than what they should be giving.

If it’s proven that an insurance company has acted in bad faith, they may be required to pay out additional damages. For example, AIG Chartis has many subsidiaries and has had to resort to unethical tactics to increase their profit margin. After maliciously refusing to cover authorized expenses, they were fined with a $58 million judgment. Try visiting sites, such as, for more information regarding this bad faith dispute.

Stay Alert to the Signs

In order to recognize bad faith with your insurance provider, you need to stay alert to the signs. Factors to be included begin with a low-ball offer by the adjuster, especially when the claim is legitimate. While most claims are initially denied, you need to do your research if your legitimate claim keeps getting denied. If an insurance provider agrees to some sort of claim, they may use tactics such as delaying payment by keeping you in the dark on a covered claim.

Make sure to keep detailed records of all information when dealing with your insurance company regarding your claim. This includes keeping track of phone calls, letters, emails and other methods of correspondence. It can mean the difference between being able to fight for what is rightfully monetarily yours and losing your case.

Suspecting Bad Faith

If you suspect your insurance company is acting in bad faith, you can take a proactive approach to your claim by filing an appeal. Fortunately, legal representation can aid you in the process since they are familiar in these types of cases. They can also determine if your payout is fair.

If your attorney feels that the insurance company has acted in bad faith, you’ll find a lawsuit to be beneficial to your claim. You may even be able to receive additional monetary damages on top of your compensation if proven successful. You can aid your attorney in the process by being organized and taking accurate and precise notes.

The practice of bad faith is unacceptable and should be immediately reported. Any delays in payment can be crippling for a family trying to survive a difficult time. That’s why it’s imperative to seek the help of an attorney to fight back. This will help you recover a fair and ethical judgment and aid you in getting your life back on track.

Nadine Swayne presents this information to those struggling with a bad faith dispute claim. Having to file for insurance, then be denied, adds insult to injury to clients. Remember, always try to maintain diligence in your personal fight for justice against companies who practice this unethical behavior.

Photo credit:

Circle Nadine on G+

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