Insurance Bad Faith Claims

Disability Insurance Lawyers Handling Bad Faith Disability Insurance Tactics

Tens of thousands of people file for disability benefits through their disability insurance company each year. Although many insurance companies are quick to provide their insured with the money and benefits to which they are entitled, there are instances where insurance companies will reject valid claims.

When insurance companies deny valid claims, they are engaging in a practice that is referred to as bad faith. Handling an insurance bad faith claim can be incredibly time-consuming and exhausting. For this reason, it is important that you have a skilled and knowledgeable bad faith insurance lawyer by your side every step of the way.

After dealing with claim denial, our dedicated disability insurance lawyers at Edelstein Martin & Nelson, LLP, can help you determine your best option moving forward and help you deal with a possible bad faith denial. Our law firm is fully committed to helping individuals get insurance benefits and compensation that they need and deserve. If you have been denied insurance benefits, you should reach out to our law firm as soon as possible. Our lawyers will review your case and look at how we can help you protect your legal rights.

What is “Bad Faith” Insurance?

When it comes to describing what a bad faith claim is, it is first essential to understand what a good faith claim is. Good faith in terms of insurance means that there is fairness and honesty both in the transaction itself and in the process of dealing with the insurance company. An insurance company is said to be acting in good faith if they are honest, do not engage in any deceptive practices, are fair, and remain impartial.

On the other hand, a claim for benefits is said to be denied in bad faith if an insurance company acted in a manner that goes against honesty, integrity, or anything that was written in the original contract. They may also say that the covered beneficiary does not qualify for benefits due to various exclusions that were not explained in the initial agreement.

There can also be cases where insurance companies fail to disclose the exclusions and the policy limits to an insured party prior to them purchasing the insurance coverage. Another example is when the insurance company makes unreasonable demands on the policyholder in order for them to prove the losses that they have suffered.

Bad Faith Tactics

When it comes down to it, insurance companies tend to care more about their own interests rather than protecting those who they are supposed to cover and represent. As a result, they often resort to unfair practices in their pursuit of profits. Unfortunately, it is not uncommon for them to disregard the genuine needs of policyholders.

There are many different bad faith tactics that insurance companies might use. Some of these include:

  • Deliberately delaying claims: When an individual files for benefits, they generally need them in a timely manner. Unfortunately, there are countless instances where insurers intentionally prolong their investigations and cause unnecessary delays in making payments to the covered parties. This tactic puts additional strain on policyholders who are already facing financial difficulties due to their disabilities.
  • Performing inadequate investigations: When a claim for benefits is filed with the insurance company, they will generally conduct an investigation in order to validate the claim. Unfortunately, there are many instances where insurance companies failed to conduct a thorough investigation into the validity of the claim for benefits. As a result, they may base their decisions on incomplete or biased information. This can lead to an unjust denial of benefits that a person is entitled to under their insurance coverage.
  • Accusing covered parties of being dishonest: Despite providing clear evidence of your injuries and disabling conditions, the insurance company may attempt to cast doubt on your credibility by questioning your honesty and your integrity. They often make baseless accusations that are aimed at discrediting genuine claims and avoiding their financial obligations.
  • Misrepresenting their insurance policy language: When filing a disability claim, you may go up against an insurance company that will specifically misinterpret the language of the insurance policy to policyholders in order to deny them the money that they need. Insurance companies often engage in bad faith practices by exploiting technicalities and ambiguities in the policy language.

When it comes to handling claims for private disability policies, having a skilled legal team by your side can make a big difference when it comes to your ability to get the benefits that are rightfully yours.

Our bad faith insurance lawyer at Edelman Martin & Nelson will investigate the insurance company’s actions, determine if they denied a legitimate disability claim, and come up with a strategy to help you protect your legal rights. We can meet with you for a free initial consultation to discuss your case at your earliest convenience.

Instances Where Filing an Insurance Bad Faith Claim is Appropriate

It is incredibly disheartening to see insurance companies prioritize profits over people. This is especially true in cases where individuals find themselves in vulnerable situations, such as dealing with devastating disabilities. Thankfully, our team at Edelstein Martin & Nelson has extensive experience helping individuals who have faced denials or inadequate compensation from their insurance companies and disability claims.

Over the years, we have achieved notable success in helping injured parties secure the disability benefits that they rightfully deserve. If you work with our bad faith insurance lawyer, you can rest assured knowing we will do everything in our power to help you get the benefits you need.

There are several instances where you may be inclined to file a bad faith claim. These can include:

Employee Retirement Income Security Act (ERISA)

If your employer provides your life or disability insurance coverage, these private disability policies are typically governed by ERISA. Should you be denied insurance benefits by your employer, it is crucial that you reach out to our team as soon as possible.

ERISA claims generally have stringent time limitations when it comes to filing an appeal after being denied. Unfortunately, failure to contest the decision within a specific timeframe could render the decision final.

At Edelstein Martin & Nelson, LLP, our team has decades of experience assisting policyholders who have been denied or inadequately compensated by their employers’ insurance coverage after filing valid claims. We have a proven track record of successfully recovering insurance benefits for our clients under ERISA, and you can feel confident in knowing that we will help you protect your legal rights and get the benefits that you deserve.

Personal Injury Protection Claims (PIP)

Personal injury protection, or PIP, is available to provide compensation for medical expenses and lost wages that a person suffers in an accident. These benefits are provided to a covered party regardless of fault. In certain states, PIP coverage is mandatory for vehicle owners, with the required minimum coverage amount varying according to state laws.

However, despite adhering to PIP benefit procedures, some victims of car accidents face significant challenges in recovering the full extent of the PIP benefits they are entitled to. If you were denied PIP coverage due to insurance bad faith, you should seek help from our legal team right away.

Health Insurance Bad Faith

Bad faith in the health insurance realm can occur when coverage is denied for necessary medical treatment, such as a critical procedure for a severe illness, under the unjust claim that it is not medically necessary. Another example is when an insurer intentionally delays processing a claim for a covered surgical procedure without a justified reason, causing financial strain and preventing timely medical care.

In addition, insurance bad faith may involve instances where an insurance company cancels the policy retroactively, alleging that the policyholder failed to disclose any pre-existing conditions, even if it was an innocent oversight, without actually conducting a thorough investigation to validate their claim. These actions by health insurance providers demonstrate a failure to fulfill their obligations outlined in the policy, constituting insurance bad faith.

Life Insurance Bad Faith

Bad faith in life insurance can occur through misrepresentation of policy terms, where the insurer bends the truth or misrepresents the coverage and benefits outlined during the policy purchase. Another example is when the insurance company unreasonably delays processing a claim for death benefits, thus causing unnecessary distress and financial hardship. In some cases, they will prolong the process by continually seeking unnecessary documentation.

There are also instances where the insurance company will wrongfully deny valid claims for benefits even when all of the required documentation was provided to support the validity of the claim. These actions directly deprive the beneficiary of the rightful benefits that they are entitled to receive.

Seeking legal recourse after being wrongfully denied benefits is critical. If you have a bad faith claim that you need help with, feel free to reach out to our law firm as soon as possible. Our team can meet with you for a free initial consultation as soon as possible so we can help you get the benefits that you deserve.

Damages for Bad Faith Claims

If you were subjected to bad faith after filing a disability insurance claim, you may be entitled to compensation for various damages that the wrongful denial of payment and benefits has caused you. In general, there are several damages that you may be able to collect. These include:

Attorney’s fees and costs: If you are successful in the filing of a bad faith claim, the court may grant you compensation to reimburse you for all of your attorney’s fees and any other costs that you have incurred as a result of pursuing the bad faith claim. This reimbursement helps to ensure that you are not financially burdened by the legal process you must undertake in order to overcome a bad faith insurance denial.

Emotional distress: If the insurance company’s bad faith conduct caused you significant emotional distress, you might be able to receive financial compensation for some of the psychological impacts that you have experienced.

Punitive damages: In some instances, individuals who are subjected to bad faith are able to seek compensation for punitive damages. These damages are designed to punish the insurance company for their willful and malicious behavior and prevent them from engaging in similar conduct in the future. It is important to note that punitive damages are generally only awarded in cases where the insurer’s actions were particularly malicious or wrong.

it is important to consult with an experienced bad faith insurance lawyer as soon as possible if you feel your disability insurance claim has been denied in bad faith. Your lawyer will need to evaluate the specifics of your case and provide you with guidance throughout the legal process.

Once you meet with one of our disability insurance attorneys, we will be able to provide you with more information regarding the potential damages that you may be entitled to recover.

Let Our Team Help with Your Bad Faith Claim

Being unfairly denied benefits under your disability insurance policy can be incredibly challenging to deal with. However, you may still have options even after being denied, especially if it can be proven that the denial was done in bad faith. For this reason, it is essential that you have a bad faith lawyer by your side to help determine if the insurance company failed to act accordingly.

Our dedicated bad faith insurance lawyer at Edelstein Martin & Nelson, attorney Keith Martin, understands how difficult it can be to deal with the frustration of being wrongfully denied the benefits that you are entitled to. That is why we fight so hard to help people across the United States with their bad faith disability insurance claim denials. Our team will do everything in our power to help you get the compensation and benefits that you need during this very difficult time.

Our team has decades of experience proudly representing clients all over the nation. Our team will do everything in our power to help you get the benefits to which you are entitled.

To discuss your case, contact our lawyers at 215-731-9900 and toll-free 800-887-4529 to schedule a free consultation to get started.