We put a lot of faith in our insurance companies. They protect our most valuable assets and give us a helping hand when disaster strikes. We take it for granted that they will come through for us in our time of need, but that happens when they don’t?

Insurance Dispute Attorneys

Companies that do this are known as bad faith insurance companies. An insurance company acts in bad faith when it takes little to no action to help a policyholder. A company that takes an unreasonably long time to investigate and settle a claim, offers an irrationally small amount to a policyholder after settling a claim, or gives false or incorrect information to a policyholder can be considered to act in bad faith.

Thankfully, Florida has enacted laws to protect those who have been wronged by their insurance companies. Here are a few bad faith insurance practices you should look out for.

  1. False advertising and information. According to Florida Statute, if an insurance company knowingly issues advertisements that misrepresent the benefits, advantages, conditions or terms of an insurance policy, they are acting in bad faith. These types of advertisements lead potential and current policyholders to believe the information presented is factual.
  1. Delayed claim investigations. Investigating insurance claims can take time. However, bad faith insurers take an unreasonable amount of time to investigate a claim. Since these companies fail to adopt and implement standards for the proper investigation of claims, policyholders are left to go through a crisis with little to no help.
  1. Denying claims without reasoning. Another telltale sign of a bad faith insurer is the denial of full coverage or partial coverage of a claim for undisclosed reasons. These rejections are usually a result of shoddy investigations using limited information. Be wary of insurance companies that fail to provide a written explanation for the denial. Insurance companies are required by law to provide the findings of their investigation to the policyholder. 
  1. Not paying a claim in full. After investigating a claim, some bad faith insurance companies will reward only a portion of the claim amount. Instead of paying the amount in full, the company will either prolong or completely abandon paying the policyholder. If you choose to pursue payment, some insurance companies may ask you to defend your entitlement to an unpaid claim.
  1. Discrimination. Insurance companies, just as other businesses, are looked down upon if they are discriminatory when providing service. No disability should be used as a reason for an insurance company to refuse to renew, sell or issue a life or disability insurance policy. Disabilities are also not to be used as reasoning for a higher rate. It is also unlawful to discriminate against a policyholder or future policyholder because of future or past travel plans. This is especially relevant because of the recent Ebola outbreak in parts of Africa. If you have traveled to Guinea, Liberia or Sierra Leone, you are still able to receive health insurance.

These five indicators are just some of the characteristics of bad faith insurance companies. If you think that you may have been the victim of a bad faith insurer, contact Orlando insurance attorney Michael B. Brehne.