What Is a Bad Faith Claim?
A Bad Faith Claim is a legal action taken by an insured individual against their insurance company for unreasonably denying, delaying, or partially fulfilling a claim without a valid reason. This type of claim is typically pursued when a person’s claim is rejected, but they believe it should have been covered. It is important to note it is not the bad faith of the client that is in question, but rather the actions of the Insurance company.
According to the American Bar Association(ABA), bad faith claims are meant to investigate misconduct by insurers and include negligent or unintentional fraud. The ABA states, “Bad faith on the part of an insurer is any frivolous or unfounded refusal to pay the proceeds of a policy; it is not necessary that such refusal be accompanied by a fraudulent intent.” These claims can be beneficial because they ensure that policyholders receive the coverage and compensation to which they are entitled, particularly when insurance companies attempt to deny coverage for unjust reasons.
The landmark case of Gruenberg v. Aetna Insurance Co. set a precedent for bad faith action claims and laid the foundation for insurers to act in good faith for their policy owners. Policyholders must know their rights and seek legal counsel if they believe their insurer is acting in bad faith.
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Personal Injury Glossary Terms
This glossary provides a quick-access resource for looking up definitions of terms you will likely encounter while seeking compensation.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W
A
Accident Report — A detailed official record of an incident created on-site by an authority figure such as a police officer or hospital staff member.
Act of God — An unforeseen event caused by natural forces without human involvement that couldn’t have been prevented with reasonable care, […]
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Fighting the Insurance Company After a TBI
Why You Need a Personal Injury Lawyer to Help Fight the Insurance Company After a TBI
We don’t often think about the brain and the hundreds of thousands, if not millions, of different ways we use it every day. But break down each part of your day into its component parts and you begin to see just how much your brain does for us.
Even making your morning coffee becomes a multi-faceted, complex operation your brain runs each and every day. Even more fundamental than that, your brain directs your body to do numerous things that we never even think about: it makes sure that you breathe, it tells your heart to beat, and it directs your body to digest the food that you eat.
So what happens when you or someone you love suffers a traumatic brain injury (TBI), […]
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