Why do we take out insurance policies? We do it to protect ourselves and the ones we love. When we purchase insurance, our insurers promise to defend us from sudden financial expenses we can’t pay. If we are hurt in an accident, receive a medical diagnosis that requires costly care, or our homes are damaged by forces out of our control, we face costs we can’t afford out of pocket. But by the terms of our agreement, our insurance companies should be there to help us afford these unexpected expenses.
So what happens when an insurance company doesn’t live up to its promises? What can we do when the time comes to pay and the insurance company isn’t there to protect us? A Chicago insurance bad faith lawyer from Thomas Law Offices can help you find answers.
We represent clients in the greater Chicago area, Cook County, and throughout the state. Our law firm skillfully represents clients filing complex Illinois bad faith insurance claims and lawsuits. Contact us below to schedule a free consultation.
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To understand insurance bad faith, we must first look at the concept of “good faith.”
Good faith, or the “implied covenant of good faith and fair dealing,” is a rule followed by most courts in the United States. This rule requires every party in a contract (such as between an insurance company and a policyholder) to adhere to the agreement as intended, without using any deceptive means to undermine the contract’s purpose.
In other words, those who enter into a contract must do what they promise to do.
The term “bad faith,” then, is the opposite of good faith. It refers to when an insurance company fails to uphold the terms of the contract. Bad faith is when an insurance company acts in a way that is not honest, fair, or reasonable to the insured party.
This type of misconduct is illegal, and our team of Illinois bad faith insurance lawyers fights to protect policyholders from harmful bad faith practices.
We’ll take a more in-depth look at how Illinois law defines bad faith below, but some of the most common examples of how large insurance companies act in bad faith include:
The Illinois Insurance Code is an extensive set of laws governing the operations of insurance companies that provide coverage to policyholders, claimants, and beneficiaries in Chicago and throughout the state. These laws standardize all practices ranging from policy limits to market competition to collecting insurance premiums from policyholders, and much more.
Section 215 ILCS 5/154.6 lists the types of practices that can be considered to be acts of bad faith. According to this Illinois statute, any one of the following actions committed by an insurance company, without just cause, is considered to be an “improper claims practice”:
If a medical mistake harmed you or your newborn, we’ll investigate what went wrong and fight for funds for lifelong care. Start with a free case evaluation today.
A head injury can change everything. We pursue negligent drivers, companies, and providers to seek compensation for treatment, lost income, and long-term needs. Get a free case evaluation now.
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From fender-benders to serious crashes, we help you pursue the money you need for medical bills, repairs, and time off work. Don’t face insurers alone—request a free case evaluation.
Hurt on a jobsite? We’ll identify who’s responsible beyond workers’ comp and pursue the recovery you deserve for pain, lost wages, and medical costs. Talk to us for a free case evaluation.
When care goes wrong, you deserve answers and accountability. We review records, build strong claims, and pursue compensation for the harm you suffered. Schedule a free case evaluation.
Motorcyclists are vulnerable—and insurers know it. We fight for riders injured by careless drivers and push for full compensation for medical care and recovery. Request a free case evaluation.
If your premature baby developed NEC after cow’s milk-based formula, your family may have legal options. We’re representing families seeking justice and compensation—act now for a free case evaluation.
Attacked because a property lacked basic security? We investigate owners’ failures—lighting, locks, cameras, staffing—and pursue compensation for your injuries. Start with a free case evaluation.
If a loved one was neglected or harmed in a facility, we’ll help you hold the home accountable and pursue compensation. Take action today—get a free case evaluation.
Injured because someone else was careless? We’ll handle the legal fight so you can focus on healing and getting life back on track. Start with a free case evaluation.
Used a recalled Philips CPAP/BiPAP or ventilator? We help people harmed by defective devices pursue claims tied to the recall and alleged foam exposure. Get a free case evaluation.
Hurt on someone else’s property? We pinpoint unsafe conditions, prove negligence, and pursue damages for medical bills and lost time. Don’t wait—get a free case evaluation.
Defective products shouldn’t cost you your health. We pursue manufacturers and sellers when unsafe designs or warnings lead to injury. Find out if you have a claim—free case evaluation.
Survivors deserve support and accountability. We help you understand your rights and pursue civil action against abusers and enablers. When you’re ready, request a free case evaluation.
A fall can mean ER visits, missed work, and lasting pain. If poor maintenance or hazards caused your injury, we’ll help you pursue compensation. Get a free case evaluation today.
Benefits can be hard to win alone. If a condition keeps you from working, we’ll guide you through the SSA process and strengthen your claim. Start with a free case evaluation.
Spinal trauma can bring lifelong care needs and huge costs. We fight for compensation that reflects the full impact on your mobility, work, and future. Request a free case evaluation.
Crashes with semis are complex and high-stakes. We investigate drivers and trucking companies and pursue the recovery you need after serious injuries. Get a free case evaluation now.
Injured at work in Kentucky? We help Louisville workers fight delays, denials, and lowball benefits so you can get medical care and wage support. Request a free consultation.
When negligence takes a life, accountability matters. We help families pursue a wrongful death claim and seek financial stability during an impossible time. Start with a free case evaluation.
You’ll notice that the word “promptly” is used frequently in the list above. That’s because one of the most common tactics insurance companies use to save money is dragging their feet when processing a claim.
Companies often engage in tricks like unreasonable delays, long periods of dropped communication, and repeated requests for more paperwork. These and other “stalling tactics” are done with the goal of pushing payment dates farther and farther out.
These tactics are used for a reason—they work.
Insurers bank on the fact that policyholders will become so frustrated by the claims process that they will eventually agree to a settlement that is substantially lower than what they deserve.
Many claimants find themselves in a financially unstable predicament, eager to settle as quickly as possible in order to get out of debt and pay off medical bills or auto repair costs. Insurance companies take full advantage of the vulnerable position many policyholders are in. And, they know most people don’t have a full understanding of their rights granted by Illinois insurance statutes.
Sadly, many of the “improper claims practices” described above are standard operating procedures for big business insurance companies.
You have enough on your plate. Get a free case evaluation and clear answers from our experienced attorneys today — we’ll take it from here.
The job of a bad faith insurance lawyer is to:
At Thomas Law Offices, we treat each bad faith case we handle with the individualized care and attention it deserves. We know the nature of our work is both broad and personal—we help hold the entire insurance industry to higher standards, while changing each individual client’s life for the better.
To give your bad faith case the best chance of success, we will handle every stage of the legal process with expertise and dedication. The Chicago bad faith insurance attorney team regularly performs the following actions to help clients win cases and recover fair compensation:
First-party claims are those filed against your own insurance company.
Third-party claims are those filed against another person’s or business’ insurance company.
Illinois bad faith insurance laws only address the filing of first-party bad faith claims. This is because a contract only exists between you and the company that supplies your insurance policy. You do not have a contractual relationship with another person’s insurance carrier—that company, therefore, does not have the same legal duty to you as it has to its own policyholders.
Thus, if another party’s insurer’s actions result in financial harm to you, there are different legal actions that must be taken to recover your losses. While you cannot file a bad faith claim against another party’s insurance company, you can file a lawsuit in court against the responsible entity. This may entail a more complicated legal process, and we’ll look at how a case like this may need to be handled below.
When you file a first-party claim with your insurance company after a home fire, auto accident, medical emergency, or other situation that requires you to make use of your insurance policy, the company has an obligation to treat your claim fairly. If that doesn’t happen, you may have the right to file a bad faith claim against the agency.
This process requires that you and your lawyer find the evidence to prove that your insurer’s conduct is “vexatious and unreasonable.” This is a deeply nuanced area of litigation, and your lawyer will need the legal acumen to successfully prove that the insurance company violated its duty and acted in bad faith against you.
There is an exception to your ability to file a first-party bad faith claim against your insurer: when an employer-sponsored benefits plan is involved. A federal law known as ERISA (Employee Retirement Income Security Act) bars most bad faith claims against employer retirement and health insurance plans for employees.
Please speak with a bad faith lawyer from Thomas Law Offices in person to discuss your legal options if your case involves an employer-sponsored insurance company.
If you are at fault for an incident that results in another person’s losses, you and your insurer may be financially responsible. Let’s say that your dog attacked a neighbor, and your homeowners insurance policy must now be put into action to cover the neighbor’s resulting medical bills.
When the injured party files a third-party claim with your insurance carrier, the company is responsible for defending you. They do this by paying the claim (if it is a valid claim),and protecting you from both invalid claims and lawsuits that may be filed against you if the claim is not fairly paid out. If your company does not defend you properly, it can lead to this specific type of bad faith case.
You cannot file a bad faith insurance claim against an insurance company that does not represent you. You may instead have the option to file a lawsuit directly against the person or business responsible for your damages.
But there is also a unique law in Illinois known as the law of “assignment,” which may allow you to pursue or recover the verdict of a bad faith claim against another insurance company (not your own) with which you filed a third-party claim.
Illinois is one of the states in which the law of assignment may apply to a bad faith claim. This is a complicated legal maneuver, but it may be a way to recover your losses if another party’s insurance agency acted in bad faith.
The right to bring a bad faith claim against the company belongs to the covered party, because it is their insurance provider, not yours. But you are the one who needs compensation. So the policyholder can “assign” you the right to file the bad faith action.
This often applies to cases in which the policyholder’s assets, to a degree exceeding the amount of insurance protection, will be vulnerable to a lawsuit if the insurance company rejects reasonable settlement offers without a valid reason. In such a case, refusal to accept a reasonable settlement fails to protect the policyholder by exposing them to being sued.
While this is a simple explanation of this doctrine, the exact cases in which it may apply must meet certain criteria. We cannot guarantee that the law of assignment will apply to your case until we first meet to evaluate your legal options. Schedule a free consultation to learn more from a qualified attorney at Thomas Law Offices.
Thomas Law Offices can evaluate your insurance policy and claim complications at no cost to you. We handle Chicago bad faith insurance cases related to:
While bad faith insurance claims can happen under any type of coverage, there are two types of policies that are most frequently involved in Illinois bad faith cases: auto insurance and health insurance.
Every motor vehicle registered and operated in Illinois must be covered by liability insurance of at least these minimum coverage amounts:
With 1,650,770 active registered vehicles in Cook County and more than 295,000 roadway accidents in Illinois in 2021, auto accident claims are one of the most common types of insurance claims filed in Chicago.
Our law firm can partner you with a Chicago bad faith auto insurance attorney if you are experiencing unreasonable challenges in your motor vehicle accident claim.
When a health insurance company denies payment of a valid claim, it can have a devastating effect on the claimant’s life. More than any other type of insurance coverage, health insurance protects the personal well-being of policyholders when their health and lives are at stake.
The control insurance companies have over health care providers often tacks on an added hurdle that prevents many patients from receiving timely and effective medical care.
How the Health Insurance Approval Process Harms Patients
Doctors and other medical professionals use their education, training, and experience to make medical decisions. But in a health care system dominated by profit-driven insurance companies, physicians are forced more and more to validate their diagnoses and treatment plans to insurance providers that continually question whether the decisions are medically necessary or not.
In short, insurance companies often have the final say on the treatment a patient can receive. If manipulative health insurance practices stand in the way of patient care, a sick individual can be denied a life-saving treatment.
This specific type of health insurance dispute is an intricate legal process. Most personal injury attorneys do not take on these types of cases due to their complexity.
Thomas Law Offices in Chicago, IL is proud to devote an area of our practice to Prior Authorization (PA) health insurance disputes. Please schedule a free consultation to discuss your case with one of our experienced attorneys who focus on these challenging legal cases.
You can also read more about how insurance company practices delay patient care and cause more adverse outcomes in the health care system.
If your health insurer acted in bad faith, a Chicago health insurance dispute lawyer from our legal team can analyze your insurance policy and investigate your case to aid you in reaching a resolution that aligns with your best interests.
Below are the benefits you may be entitled to recover through a first-party bad faith claim or a third-party bad faith lawsuit.
Illinois insurance statute 215 ILCS 5/155 specifies the benefits to which a plaintiff may be entitled through a first-party bad faith insurance claim. Recoverable benefits in a first-party claim are:
If you are filing a third-party lawsuit directly against another party, you are not limited in the amount or type of damages you can recover.
By filing a third-party lawsuit, you seek a fair settlement for financial losses in the form of economic and non-economic damages. Your case will be presented before a judge (and usually a jury) who will reach a verdict about the amount of compensation that is fair and equitable in your case. In a very small number of cases, punitive damages may also be applied.
Punitive damages are only awarded when there is clear and convincing evidence that the defendant acted “with evil motive or with a reckless and outrageous indifference to a highly unreasonable risk of harm and with a conscious indifference to the rights and safety of others.” They are only an option if actual (compensatory) damages have first been approved, and they may not exceed three times the amount awarded in economic damages.
Punitive damages are not often applied in personal injury lawsuits, and you will need to speak with an experienced attorney about the individual merits of your case to determine whether your case is eligible. Please schedule a free consultation with one of our bad faith insurance attorneys to learn more.
Under non-exceptional circumstances, you are given two years under Illinois law to file a Chicago bad faith claim. The two-year deadline typically starts from the date you discovered your claim was wrongfully denied, or when the insurance company failed to uphold their legal obligations to you as a claimant.
This date may be difficult to establish, depending on the details of your case. Be sure to save any and all documentation and communications you receive from your insurance carrier.
Contact a bad faith insurance attorney as soon as you learn of issues related to your claim.
This is the best way to make sure you have plenty of time to consider and pursue legal options without missing a vital deadline. Additionally, evidence to support your claim becomes more difficult to secure as time passes. Don’t delay in establishing a relationship with a legal advocate who can represent you in your Chicago insurance bad faith case.
At Thomas Law Offices, our compassionate legal team has helped many clients and their family members through the difficult process of holding an insurance company liable for harmful misconduct.
The bad faith insurance lawyers from our law office want to help, and we have the legal resources to effectively render aid in your situation.
Thomas Law Offices continues to be one of the most highly respected law firms in the greater Chicago area, and we pride ourselves on the guidance and advocacy we provide to victims of bad faith in our area.
In line with our commitment to support clients’ rights, we don’t charge a fee for a free initial consultation to learn your rights and options. And we don’t collect our attorney’s fees until we win your case. Our contingency fee model allows us to give legal support to those who need it, regardless of their ability to pay for representation upfront.
Let us begin working for you. Contact a Chicago insurance bad faith lawyer today. We’ll match you with an attorney who focuses on health insurance disputes, auto insurance bad faith, third-party lawsuits, or another type of insurance dispute you are currently experiencing.
Call or fill out our no-obligation contact form.
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