Californian residents like you rely on your insurance for vital, every-day things. This can include medical procedures, medication, routine doctor visits, and other things that your life and well-being rely on. When insurance companies refuse to honor their policies, it can be a huge blow.
Not all states have the same requirements for something to be considered bad faith. Conduct without proper cause – or with unreasonable cause – can be considered bad faith behavior in some. Other states have a more specific definition that can make it hard for you to get compensated if your claim is considered to be “relatively debatable”. However, there are two common elements that must be present in all bad faith cases.
One, you were denied the benefits that were supposedly due to you under your insurance policy. This requires you to prove that you had a valid claim, and that the claim was denied by the insurer in question. In some states, you must make what is called a “final demand” to the insurance company before the case can proceed in court.
Two, there was no good reason for these benefits to be denied. At the time of the decision, there were different factors at play influencing the outcome. These factors and other information will be examined by the court to decide if the insurance company was in the right. It should be noted that proof of negligence is not enough proof of bad faith in some states.
Have you been in a situation where your insurance company did not support you when they should have? Were benefits withheld from you, or policies not honored? If there was bad conduct within your insurance company, you may wish to seek an attorney. They can represent you in court and get you the compensation you rightfully deserve.