An insurance policy is a contract. As the policyholder, you are responsible for paying your premiums on time. In exchange, the insurance company is responsible for paying reimbursement for any losses you incur that are covered by the policy. In theory, you could pay far less in premiums than you would receive in an insurance settlement. Because they are in the business of making money, insurance depends on signing up a lot of policyholders but minimizing how much money they have to give back.
When the insurance company delays or denies a legitimate claim, they are acting in bad faith. That is when you need to get a skilled Louisville insurance bad faith lawyer involved in your claim.
Thomas Law Offices has many years of experience in fighting back against bad faith insurance companies. Our goal is to work hard to see that our clients get what they deserve.
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Kentucky’s Bad Faith Statute
Bad faith insurance became such a problem that the Kentucky legislature enacted the Unfair Claims Settlement Practices Act of Kentucky. According to the act, a person or entity can act in bad faith if they are found engaging in the following practices:
- Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
- Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies.
- Refusing to pay claims without conducting a reasonable investigation based upon all available information.
- Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds.
- Attempting to settle a claim for less than the amount to which a reasonable man would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application.
First-Party Versus Third-Party Bad Faith Claims
An insurance company can act in bad faith with two types of claims: first-party or third-party claims. Typically, a first-party bad faith claim usually involves property damage. When a property damage claim is filed, the insurance company will assess the damages and determine if they are obligated to pay based on the policy. There are many instances after hurricanes when homeowners discover they aren’t covered based on insurance policy loopholes about the nature of the damage.
ABC Action News reported that in the aftermath of Hurricane Debby, half of all claims filed were closed without payments. If the policy does provide coverage, the insurance carrier could be accused of bad faith if it doesn’t properly investigate the claim, pay the wrong amount, or delay the payment.
Third-party bad faith insurance claims involve liability claims where a third party caused your losses. For instance, if you’re injured and your car is damaged in an accident caused by another driver, it is the responsibility of that third-party’s insurance company to reimburse you for your losses. The insurance company could deny their policyholder was at fault or will try to claim you should share in the fault.
Because Kentucky applies comparative fault laws, both drivers in an accident could share in the fault of the crash. An insurance company would push for that in the hope of paying out less on what you are claiming. However, if the evidence is clear about who is at fault, the company could be acting in bad faith by ignoring evidence or delaying payment.
How an Experienced Louisville Insurance Bad Faith Lawyer Can Help
Another aspect that insurance companies have in common is that they all have a team of attorneys and adjusters standing by to help them deny or delay claims. An experienced Louisville insurance lawyer will have the skills to negotiate with the insurance team. The insurance company will try to deploy many options to deny a payment.
Your attorney will conduct a thorough policy review to determine the following:
You’ve Filed a Legitimate Claim
Whether your claim is for damage to your home or car, you need to demonstrate that your policy covers the damage. For example, in a similar hurricane insurance incident, as mentioned above, some homeowners discovered their insurance covered wind damage but not flooding damage, even though they both happened in the same storm. That is why you must be thorough when choosing your policy, especially concerning property damage.
Your Coverage Is Sufficient
The insurance review will also reveal that your coverage is sufficient to ask what damages you claim. An insurance company is only obligated to pay for the coverage in the policy. For example, if your homeowner’s policy pays a maximum of $100,000 in damages but your actual damages are double that, you’ll only be able to recover the $100,000.
You Kept Up Your Premium Payments
You will need to prove you’ve maintained your premium payments. One missed payment at midnight on the due date is all the insurance companies need to cancel a policy. The “check is in the mail” excuse will not be applicable.
You also need to have filed a claim in a timely manner with all the proper documentation. Your attorney can help with gathering the documents and ensure you’re filing on time.
Taking the Insurance Company to Court
When an insurance company is found to have acted in bad faith, the matter is typically resolved in civil court. When your Louisville insurance bad faith lawyer files the official complaint, the insurance company will be compelled to respond. In other words, a civil complaint activates the judicial system, meaning that the plaintiff and defendant sides must comply with hearings and schedules.
Thomas Law Offices Can Help with Insurance Bad Faith Claims
The act of filing could inspire the insurance company to move to a settlement. When Thomas Law Offices take on your bad faith case, we’ll strive to make sure any settlement amount is fair and reasonable. We might also advise that the amount is lower than what might be awarded in a civil trial. Ultimately, accepting any settlement offer will be your decision, but we’ll always ensure you can make an informed decision.
If you feel an insurance company has acted in bad faith, you need to set up a free case evaluation today. Our Louisville insurance bad faith lawyer is ready to listen.
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