Can I Sue the Insurance Company for Delaying a Claim?

Accepting the first settlement offer an insurer makes when filing a personal injury claim, auto claim, or other such claim is often unwise. An insurance company’s initial settlement offer may not represent the full amount of compensation you deserve.

However, once you do accept a settlement amount, you may expect the insurance company to issue a check relatively shortly after. Perhaps this hasn’t happened.

An insurance company may not be engaging in good faith practices if it is delaying payment unreasonably. Speak with our personal injury team at Munley Law to learn more about your options in these circumstances.

Understanding Insurance Bad Faith

There is an implied contract between an insurer and a client. Per this implied contract, the insurance company theoretically agrees to operate in good faith, meaning it will honor its obligations when doing so is necessary.

Unfortunately, insurers don’t always abide by this unwritten contract. The following are a few common examples of bad faith behaviors on the part of insurers:

• Denying valid claims
• Not properly investigating a claim to determine if it’s valid
• Offering a settlement amount that’s less than a claim is actually worth
• Not accurately representing the law, a policy, or both when discussing these topics with a client or claimant
• Delaying the process by completing certain steps multiple times, engaging in unnecessary correspondence, etc.

An insurance provider can even continue to engage in bad faith practices after technically agreeing to pay a settlement. Such bad faith practices may involve delaying a payout instead of paying someone what they’re owed according to the terms of a settlement.

When an insurance company denies a claim, its goal is to avoid paying a claimant, as no profit-centric business aims to incur financial losses. The insurance company may have the same goal when delaying a settlement payment.

It can be very frustrating to deal with an insurance provider who won’t pay you what they agreed to. Suspect bad faith? Contact the bad faith insurance lawyers at Munley Law for a free case evaluation.

Legal Time Limits for Insurance Claim Settlement

Pennsylvania law establishes limits on how much time an insurance company can spend investigating and processing a claim. How long the insurance company has to respond to your claim will vary depending on whether you’re filing a claim with your own insurance or someone else’s.

When you file a claim with your own insurance company, the insurer typically has 15 days to investigate the case and to notify you in writing of its decision. The insurance company has 30 days to conduct its investigation if you’re filing a claim with someone else’s insurance.

There are exceptions to these timeframes. For example, an insurance company may need more time to complete an investigation. They have to notify you accordingly if they need additional time. The law also requires the insurance company to provide you with periodic updates about the status of your claim. You may suspect bad faith if it seems an insurer is exaggerating how long it should take them to finish their investigation.

Pennsylvania law doesn’t specify exactly how much time an insurance company has to issue a check when you agree upon a settlement. That doesn’t mean insurance laws permit an insurance company to postpone issuing a check indefinitely.

Unsure if your claim is being unreasonably delayed? Let Munley Law review your case.

Steps to Take When Your Insurance Company is Delaying

Taking proper steps can help you document an insurance company’s bad faith practices and build a case if you plan to sue an insurance company for lack of payment. Steps to take when you believe an insurer is refusing to issue payment in a timely manner include:

• Document all communication with the insurance company and its representatives.
• Maintain a timeline in which you mark important dates and milestones in the settlement process (such as claim submitted, offer made, offer accepted, etc.).
• File a formal complaint with the Pennsylvania Insurance Department or the relevant insurance department or agency in your state. Keep records indicating you filed such a complaint. If you have to present your case before a jury, you may have a better chance of showing that you’re not just out for extra money because you did take the time to address the issue through other avenues first.
• Seek legal counsel from attorneys who have experience dealing with insurance companies. A lawyer can help you better understand whether you have grounds to submit a bad faith lawsuit. They can also help you put together a strong case with supporting evidence. In addition, an attorney familiar with insurance law can answer any other questions you may have about insurance company practices that you believe may be unfair to you.

Don’t wait any longer. Reach out to Munley Law to protect your rights.

Proving Unreasonable Delay in Your Insurance Claim

When suing an insurance company for bad faith insurance practices, submitting evidence of said bad faith is critical. Essential documentation to gather indicating an insurer has failed to pay you what you deserve in a timely manner includes:

• Records of all correspondence with the insurance company
• Your insurance policy
• Any documentation (such as correspondence) that seems to indicate an insurer was trying to delay the payment process by making repeat requests for information, providing the same information or documentation twice, etc.

You also need to demonstrate that you experienced some form of financial or emotional harm because an insurer refused to issue timely payment for a valid claim. These types of insurance disputes often result in financial struggles for claimants,  in addition to any struggles they may have faced when initially filing a claim. The difficulties one experiences because they’re not receiving payment an insurance provider owes them, can also result in emotional challenges for which compensation may be available.

Building a strong case against an insurance company when preparing to take legal action can require many steps. Luckily, you don’t have to go about this process on your own. Seeking legal advice can help you better appreciate how an attorney can help you now.

Let Munley Law help you build a solid case. Schedule your free consultation today.

Legal Options for Different Types of Insurance Delays

You might wonder if the type of claim you submitted and the type of insurance coverage you’re working with will have any influence on your legal options if the insurance company acts in bad faith. Common types of insurance claims and delays include:

• Auto insurance claim delays
• Health insurance claim delays
• Property insurance claim delays

Remember, while state law doesn’t establish how long you should wait before receiving a check from an insurer after arriving at a settlement, it does require insurers to complete their investigations and make their decisions within certain timeframes. Delays may be more common in complex cases (such as auto insurance claims involving multiple injured parties or vehicles) where the insurance agent needs additional time to finish investigating. Bad faith isn’t always the reason for a delay.

Don’t worry if you feel intimidated navigating insurance coverage and policies while dealing with bad faith insurance tactics. Whatever your insurance type, Munley Law can guide you through your legal options.

The Process of Suing an Insurance Company

It’s possible to take legal action and sue an insurance company when said insurance company fails to pay your settlement in a reasonable timeframe. Be aware that there is a two-year time limit for filing bad faith lawsuits against insurance companies in Pennsylvania. You have two years from the date the insurance company took some form of wrongful action (or, in this case, inaction) to sue. If you miss the deadline, you will likely be unable to recover the compensation for which you may be eligible.

The process of suing an insurance company for bad faith in Pennsylvania may involve:

• Expressing your feeling to the insurer that the insurance company is wrongfully delaying payment, as it helps to have a record showing you tried to address this issue with an insurer first before taking legal action
• Gathering evidence and documentation, as previously discussed
• Submitting a lawsuit with documentation and requests for damages
• Responding to questions and requests from the insurance company
• Negotiating with the insurance company’s attorneys
• Going to court if the insurance company or their lawyers aren’t willing to make a fair offer

You don’t need to worry if an insurance company or its lawyers request information from you during the prelude to a trial. If you’ve enlisted the help of legal counsel, your lawyers can handle all correspondence with such parties on your behalf.

Outcomes can vary in these circumstances. If an insurer denies delaying payment, you might have to go to court and convince a jury to award damages. However, this may be unnecessary if you can reach an agreement with the insurer and its lawyers beforehand. This is another task an attorney can help you with.

Ready to take legal action? Let Munley Law’s experienced attorneys represent you.

Damages You Can Recover in an Insurance Delay Lawsuit

Under Pennsylvania law, when you sue an insurance company, you may receive damages that include interest on the original payment you should have received when you first arrived at a settlement with the insurance company. You may also receive compensation for struggles you experienced as a result of delayed payment.

A jury may award punitive damages if your case goes to trial. Punitive damages don’t serve to compensate you for specific losses. Instead, they serve to punish the insurance company for engaging in egregious bad faith.

You may incur attorney fees and court costs when exercising your legal rights and suing a non-paying insurer. If you win your case, you can also receive compensation for these expenses.

Maximize your recovery. Consult with Munley Law to understand your potential compensation.

Bad Faith Experts at Munley Law Break Down Bad Faith

The Importance of Legal Representation in Insurance Delay Cases

It is extremely helpful to work with experienced lawyers who’ve handled cases like yours in the past when filing a lawsuit with an insurer. Insurance law is a very complex topic. Naturally, an insurance company and its lawyers will understand the law to a greater degree than you may.

Having representation from lawyers with experience suing companies allows you to level the playing field now. Lawyers can help you in such ways as:

• Reviewing your case and the applicable insurance policy to determine whether you have legal grounds to sue
• Helping you gather evidence, taking witness statements, etc.
• Accounting for your losses to estimate how much compensation you may deserve
• Submitting a lawsuit with supporting evidence by the deadline
• Handling all negotiations and correspondence with the insurance company and its lawyers
• Representing you in court if your case goes to trial
• Answering any additional questions you may have about your legal rights

Don’t face the insurance company alone. Partner with Munley Law for expert representation.