If you suffered damages in an accident, are expecting payment for a home insurance claim or have another insurance issue, you have a good reason to expect the company to follow through on payment that is due. After all, you are paying for your coverage, and the purpose of Nevada insurance companies is to reimburse policyholders when applicable. When an insurance company fails to make payments you are entitled to, you may be dealing with a bad faith situation. At Aldrich Law Firm, Ltd., we understand how frustrating this can be.
The Cornell University Law School’s Legal Information Institute defines insurance bad faith as an instance in which the insurer refuses to provide a reimbursement or settlement under the terms of the policy. If you are unsatisfied with the amount the insurance company offers you, does this constitute bad faith? Not necessarily. To qualify as bad faith, the company’s offer – or lack thereof – would have to be fraudulent in nature, dishonest or neglectful. In other words, an insurance company acting in bad faith would be refusing to honor its promises according to your policy agreement.
For example, you might have filed a claim after a car accident in which your injuries totaled over $2,000 in medical bills. Your policy states it covers up to $5,000 in medical expenses, but your adjuster offers you only $250 and refuses to provide an explanation for the low amount or return your inquiries. You may then have reason to claim bad faith. It is often, however, within your insurance company’s rights to negotiate with you or to offer a reasonable settlement, even if it is not for the full amount.
Learn more about insurance bad faith and professional malpractice by visiting our insurance litigation page.