Am I Experiencing Insurance Bad Faith?

It is one of the expenses of adulthood that most people tend to just overlook: insurance. When you’re a kid, you think that if something bad ever happened to you, your parents or guardians would be able to find a way to fix it because you don’t know any better – you’re a child. Things aren’t quite as easy as all that once you get older and things like insurance need to be taken into consideration.

When you do, however, acquire an insurance policy that works for you, then you may be able to rest easy and go about your daily life with the secure knowledge that in the event of the worst case scenario, you have an insurance policy that backs you up and can take care of you in the ways that your parents or guardians used to be able to do before. However, not every insurance provider acts responsibly and gives cause for there to be claims of insurance bad faith.

According to the website of Smith Kendall, PLLC, insurers need to be held accountable for the trust that has been given to them by their policyholders. Should they fail to do this, they should then be accountable for their negligence and the consequences that their negligence has caused.

For example, an insurer requiring too much tedious documentation when it isn’t even required by the policy is a matter of insurance bad faith. If an insurer were to advise the policyholder to not consult or seek the aid of a lawyer, that can also be a matter of insurance bad faith. There are numerous potential instances of insurance bad faith due to the nature of insurance and how it works.

If you have any questions about your policy, make sure that you ask about it and demand a satisfactory answer, which is your right as a policyholder.