Your insurance company has no problem collecting the premiums you pay regularly. When you need to file a claim, your insurer should pay the claim promptly according to the terms of your policy. If that does not happen, your insurance provider may not be living up to its legal obligation to act in good faith.
You likely have some legal options for dealing with an insurance provider that acts in bad faith. Spotting bad faith, though, is probably the first step. Here are three tell-tale signs your insurer may not have denied your claim in good faith.
1. Your insurer did not communicate with you
After you file a claim, an adjuster should contact you to discuss the matter. The adjuster or someone else at the insurance company should also be available to answer your questions and address your concerns. If there is a lack of communication, your insurer may have breached its legal duty.
2. Your insurer gave no legitimate reason for the denial
Insurers regularly deny claims for legitimate reasons. If your provider did not explain the denial to you or lacked any legitimate basis for denying your claim, you should investigate whether it acted in bad faith. After all, your insurer should be able to explain the denial using clear and concise language.
3. Your insurer did not investigate
Before denying a claim, your insurer probably has a duty to investigate. If your insurer did not investigate at all, you may have a valid bad faith legal claim. The same may be true if the investigation was incomplete or inadequate.
Ultimately, the quality and length of the investigation may give you a valid reason to attack the validity of your insurance denial.