Signs of Insurance Bad Faith Tactics

By Anderson, Cummings & Drawhorn, LLP on August 30, 2016

insurance claim form

Insurance companies are supposed to act in good faith, including negotiating, investigating and settling claims as part of the “implied covenant of good faith and fair dealing.” This means that the insured and insurer establish a contract that entails being honest with one another, treating each other fairly and not prohibiting anyone from the contract benefits.

However, not all insurance companies abide by this mandate and they use bad faith tactics to avoid compensating victims. The following are five bad faith strategies:

Bad Faith Tactics

Denying a claim without a reason – If an insurance company does not provide a reason why it rejected your claim, you may have grounds to file a claim against that company.

Failure to investigate a claim – Good faith necessitates thorough and timely investigations into claims. If an insurance company does not look into the auto accident claim quickly, you could file a bad faith insurance claim.

Offering little money for a claim that is worth more – If an insurance company will not abandon their “low-ball” settlement and pay you what your claim is worth, speak to an insurance bad faith lawyer right away.

Refusing to pay on a valid claim – If you have filed a claim, your insurance company is required to make a payment within a reasonable time period. If they do not, you may be able to file a lawsuit.

Threatening the insured – Policyholders who are threatened by insurance companies after their accidents should contact an experienced insurance bad faith lawyer immediately. Your insurance company should treat you professionally and with respect.

If you have been swindled by an insurance company acting in bad faith, contact the insurance bad faith lawyers at Anderson, Cummings & Drawhorn, LLP to find out if you are eligible to file a lawsuit and recover compensation for the damages you have suffered.

Schedule your free consultation today by calling a Fort Worth personal injury attorney at our firm at (817) 920-9000. Please Read: Is Insurance Valid if Registration is Expired in Texas?

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive guidelines. This page was approved by attorney Seth Anderson, whose team has more than 50 years of combined legal experience in helping victims of personal injury seek justice.

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