Bad Faith Life Insurance

Our life insurance attorneys work with beneficiaries whose payout has been delayed or denied by the insurer in bad faith.

Life insurance policyholders and their beneficiaries deserve full legal protection under the policy. The insurer has a duty to act in good faith and respect the terms of the policy. Deceptive and unfair actions are unacceptable. Our bad faith life insurance lawyers can hold insurance companies accountable and are fully prepared to litigate against them on your behalf. 

Call (888) 510-2212 for a free, no-obligation case evaluation. Our life insurance attorneys will analyze your case and will help you determine which course of action to take.

Our Experience in Handling Bad Faith Life Insurance Cases

At Kadetskaya Law Firm, we have a high success rate in settling bad faith lawsuits against life insurance companies for denying or delaying policy death benefits. We will make sure your legal action is handled professionally and competently. We have won various types of bad faith insurance cases including the following scenarios:

  • Failure to provide a reasonable explanation for the claim denial; 
  • Wrongfully terminating the policy/wrongful policy lapse; 
  • Failure to investigate the claim prior to denial; 
  • Failure to properly allocate premiums paid; 
  • Failure to provide a grace period; 
  • Failure to inform the insured of a pending lapse; 
  • Failure to timely pay the claim after all the supporting documents have been submitted. 

If you find yourself in a situation where the insurer has handled your claim in an unfair manner, you may have legal recourse for bad faith. Our bad faith insurance attorneys will help you recover the policy amount, interest, and attorney’s fees from the insurer.

How Our Bad Faith Insurance Attorneys Can Help Win Your Case

Our attorneys know how life insurance companies may influence you to settle quickly and we know how to fight them. We will carefully analyze your case and design a comprehensive plan to help you obtain maximum recovery, including all damages, interest, penalties, and attorney’s fees. 

At our law firm, we have considerable experience in:

  • Recovering damages for clients whose claims were denied in bad faith;
  • Holding insurance companies accountable for bad faith in handling life insurance claims; 
  • Settling life insurance cases fast; 
  • Making sure beneficiaries’ rights are protected under policy terms and applicable law. 

If your insurer is delaying paying life insurance death benefits, offering you less than you anticipated, or denying your claim, do not hesitate to call us. We are fierce in defending your rights as life insurance beneficiaries and will help you obtain your rightful compensation.

Bad Faith Insurance Lawyer Fee

Our bad faith attorneys work on a contingent fee basis. It means that we do not charge legal fees unless we collect the life insurance proceeds for you. Only then will we charge a reasonable legal fee. We take pride in offering competitive contingent fee structures and will work with you to ensure you are comfortable with the fee. If your claim has been denied or delayed, call (888) 510-2212 for a free case evaluation from one of our bad faith life insurance lawyers. We have the experience you can trust.

Below are the most frequent legal questions we get from beneficiaries who are in need of help with their denied or delayed life insurance claims where the insurer acted in bad faith:

Bad Faith Insurance FAQ

Definition: What Is Insurance Bad Faith?

Insurance companies have a duty to deal fairly and in good faith with their clients. If they breach this duty, beneficiaires and policyholders who have been financially hurt as a result may have a claim for bad faith. 

Under the law, insurers must investigate the claim, uphold the policy terms, timely pay the claim, timely inform their clients of policy changes and pending lapse and provide correct information regarding the policy. When they avoid honoring contractual obligations and fail to provide an adequate reason, it may mean the insurance company acted in bad faith, and you may pursue a claim for bad faith. Insurers involved in tortious bad faith conduct may be liable under several doctrines: fraud, intentional infliction of emotional distress, breach of duty of good faith and fair dealing, and statutory violations.

Fraud: Fraud is the most common cause of action supportable when the insurer acts so badly it appears that the insurer, from the inception of the contract, never really intended to pay the claims.

Intentional Infliction of Emotional Distress: Another theory to afford relief against bad claims handling practices by insurers is intentional infliction of emotional distress. The plaintiff in such cases has to prove outrageous conduct and severe emotional distress in cases involving life insurance, disability insurance, or medical insurance.

Breach of Duty of Good Faith and Fair Dealing: Insurers owe their insureds an extra-contractual duty of good faith and fair dealing. A breach of this duty may impose upon insurers liability in excess of policy benefits. It may take the form of compensatory damages or punitive damages.

Statutory Violations: The Model Unfair Trade Practices Act defines unfair claims practices, enumerates complaint handling procedures, and preserves insureds’ rights to enforce other state laws (statutory as well as common law). Many states have enacted rules or regulations similar or related to the Model Regulation. The Model Regulation deals with file and record documentation, misrepresentation of policy provisions as to coverage, acknowledging communications from insureds, investigations of claims, and prompt, fair, and equitable settlements of claims. The Model Regulation sets forth the following specific time limits for insurers:

  1. Ten working days in which to acknowledge communications from insureds;
  2. Thirty days in which to complete an investigation of claims;
  3. Fifteen days in which to respond after insureds present proof of loss either insuring or denying the claim or stating why it will take more time to make a determination; and
  4. If more than 45 days from receipt of proof of loss is needed to make a determination the insurer must again notify the insured setting forth the reasons why additional time is needed and must continue to notify the insured every subsequent 45 days until a determination is made.

When Can You File an Action for Bad Faith?

Not all wrongful claim delays or denials are in bad faith. There are legitimate situations where the policy may not offer coverage, but you may have a bad case if the insurer failed to provide reasonable proof or support for denying the claim, delaying it, or offering a reduced settlement.

If you suspect the insurance company employed unfair practices, read the insurance policy carefully. However, most contracts have complicated language, clauses, and life insurance exclusions designed to protect insurers against lawsuits. You should seek legal advice from a life insurance bad faith lawyer to review your contract and determine if you have a reason to sue the life insurance company for acting in bad faith. Our life insurance attorneys have the knowledge and experience you need to achieve a favorable result. 

Examples of Insurance Company Bad Faith Tactics

Examples of insurance bad faith practices include: 

  • Deliberately misinterpreting a material fact or policy provision relating to coverage
  • Causing unreasonable delays throughout the life insurance claim process
  • Failing to confirm or deny coverage in a reasonable amount of time
  • Taking an unreasonable period of time to pay your claim
  • Delaying or denying a claim without explanation
  • Using coercion or abusive tactics to make you settle the claim
  • Failing to investigate a claim thoroughly
  • Failing to provide a satisfactory reason for denying your claim
  • Making threatening statements
  • Offering a settlement substantially smaller than the original face value of the policy
  • Failing to enter settlement negotiations
  • Failing to reach a settlement after liability is established
  • Failing to disclose policy limits and/or exclusions prior to purchase.

If you are experiencing any of these bad faith practices, you do not have to accept the insurer’s terms. You are legally entitled to a thorough claim investigation in a reasonable amount of time. An experienced bad faith insurance attorney can help. A free, confidential case evaluation is always available at our law firm. Call (888) 510-2212 to speak with one of our life insurance lawyers.

How Do You Prove Your Life Insurance Company Acted in Bad Faith?

To prove bad faith, a beneficiary must establish that the benefit promised to them under the policy has been denied and that this denial was unreasonable and without proper cause under the law. If you suspect your life insurance company engaged in bad faith, consult with a life insurance bad faith attorney with experience in handling complex cases involving bad faith. 

What Damages are Available in Insurance Bad Faith Lawsuits?

If your life insurance claim is delayed or denied in bad faith you may reach damages in excess of policy limits. With the help of an insurance bad faith lawyer on your side, you may recover consequential damages, attorney fees, costs, interest on unpaid benefits and punitive damages. Punitive damages can be awarded where the insurer’s conduct is so egregious and frequent that it indicates a general business practice. 

What Is an Insurance Bad Faith Attorney?

Bad faith insurance attorneys are attorneys who represent policy beneficiaries who have been denied or paid a substantially lower settlement without proper cause. 

If you suspect that the insurer acted in bad faith when handling your claim, you should seek legal counsel. Our life insurance bad faith lawyers can evaluate your situation and determine if you have a case. Call (888) 510-2212 for a free consultation.

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