How to know if your claim was denied in bad faith

Individuals who pay their insurance premiums consistently expect their insurance company to give them the support they need in times of trouble. For example, older California workers suffering from severe injuries or long-term disabilities should be able to collect insurance for financial assistance.

Unfortunately, insurance companies are often more interested in their finances than the individuals they are supposed to support. Some of them even go to extreme measures to deny valid claims to protect their profit. It is essential to know the signs of a bad faith insurance claim, so you can appeal to obtain the benefits you deserve.

Understanding good faith

There are high standards and expectations that insurance companies will act in good faith with their customers. That means that insurance companies:

  • Collect and provide relevant information to the claim
  • Reserve judgment
  • Engage in honest practices

There are times when insurance companies have justified reasons to deny a claim. ERISA claims can be complicated, and even a small mistake could lead to a denial. That does not automatically mean the insurance company acted in bad faith. As long as there is a legitimate reason for the denial, then the insurance company still acted in good faith.

Signs of a bad faith claim

Once you know the elements of a good faith insurance claim, it is easier to recognize a bad faith claim. Bad faith insurance claims involve unethical practices and reasons for denial. Aspects of bad faith claims include:

  • Improper investigation of your claim
  • Denial without a valid reason
  • Benefits or payment offers far less than you deserve
  • Failure to provide relevant claim or contact information
  • Manipulation of the language in your policy 

Remember, most insurance companies aim to protect their profit. That means that these actions of bad faith are not often apparent. It is essential to be careful when dealing with insurance companies and be on the lookout for these indicators of bad faith.

You and your family both need and deserve benefits to assist you after sustaining a severe injury or long-term disability. Understanding the signs of a bad faith insurance claim can help you protect your rights.

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