BAD FAITH DENIAL OF INSURANCE

Bad faith denial of insurance claims must be countered with immediate and aggressive action. Your insurance policy may have a time limit within which an internal appeal of a claims denial must be taken. Every state has statutes of limitations. Sooner or later if you are wrongfully denied and fail to pursue your rights, you will lose them. The good news in Tennessee is that insurance companies that engage in bad faith settlement practices are subject to a bad faith law that applies especially to insurance companies.

If an insurance company is found to have engaged in bad faith practices, it can be subject to multiple damages and attorneys fees. Bad faith can include denial of coverage when the plain language of the insurance policy requires coverage. It can also include such favorite insurance company practices as offering less than a claim is worth in order to pressure a financially strapped claimant to accept less than he is entitled to, or to deny an obviously valid claim, forcing litigation to obtain payment that should have been prompt and voluntary. Aggressive action when faced with bad faith insurance practices helps every insurance policy holder to obtain the value of his or her insurance purchase.

Consumers and businesses alike are commonly mistreated by insurance carriers. Insurance policies are intentionally confusing and ambiguous, giving the insurance companies the edge over consumers and businesses. Under the covenant of good faith and fair dealing, implied in all insurance contracts, this mistreatment or fraud is termed "bad faith." Bad faith is when the insurance company does not abide by the terms and conditions of the insured's policy and willfully refuses to pay a legitimate claim for damages.

Some examples insurance bad faith include:

  • Denial of insurance benefits due under a policy
  • An unreasonable delay in payment of benefits due
  • An unreasonably low offer to compensate justified damages
  • Non-disclosure of policy benefits to the insured
  • Failure to promptly investigate or failure to properly investigate a claim

If you or a loved one has been the victim of a bad faith denial of insurance call 615-259-1500 today!