The Essential Laws of Policies Explained

Understanding Insurance Bad Faith

Insurance bad faith, also called insurance fraud, refers to the mistreatment of consumers and businesses by their insurers. It is normally used in situations in which an insured person or entity is refused a settlement payout.

Insurance bad faith is unfortunately a widespread occurrence. A lot of insurance companies make use of statistics to know how much they need to pay out, depending on particular circumstances. Even if an insured person is entitled to a certain amount of cash, the insurer may still not want to pay it in full. Either the individual or entity accepts the insurer’s decision or brings the matter to court for bad faith.

Three of the most common scenarios involving insurance bad faith are:

> insurer denying all promised benefits to the insured;

> insurer offering less compensation than what the policy guarantees; and

> unwarranted payment delays.

Each insurance contract comes with a stated or implied “covenant of good faith and fair dealing.” That means the two parties, the insurer and insured, have to comply with all the terms of their contract.

In such a contract, the insurance company must fully compensate the insured party when appropriate and in a timely manner; otherwise, the insurer will have committed a violation of the good faith and fair dealing covenant. In some states, there are statutes or other regulations that govern bad faith by insurance firms.

When bad faith is exhibited by these companies, they may be subject to punitive damages, government penalties and statutory damage. Bad faith claims are affected by different laws in different states, so anyone dealing with related issues with their insurers must talk to a lawyer.

The bad faith damages paid by insurance companies are different, depending on the jurisdiction. In general, the damages will be equivalent to the actual compensatory damages the insured would have rightfully obtained from the insurer in a non-bad faith setting. In a number of states, punitive damages – damages intended as punishment for an insurer’s bad conduct – also apply. In some states, there are limits to how much may be claimed in punitive damages; in others, there are none. Since insurance bad faith or fraud can be complex and confusing, anyone planning to go to court because of such experience should always consult with a lawyer.

This kind of case is typically accepted on contingency basis by an attorney. That means the attorney will not be paid from the client’s award of damages, but rather from the damages that the insurer will have to pay the lawyer in a separate judgement.

If you think your insurer has acted in bad faith in relation to your policy claim, your first step is to see an insurance lawyer who can define the steps you must take.

Smart Tips For Finding Lawyers

Situations Where You Need the Services of a Compensation Attorney

Workers’ compensation allows for the provision of wage replacement and medical benefits to the workers injured while undertaking their duties as employees of a said company. In some instances employers may refuse to compensate as required by law hence the need of such an attorney. So when do one really need the services of a compensation attorney? Below are some of the instances when to hire a compensation attorney.

Claim denial by the employer

Chances are that when you file for the injuries suffered the employer will deny the claim. Also in many situations one may fear to deal with the employer head-on for the fear of losing their job. Other tactics that an employer may use is to intimidate you, or threaten to fire you should you go forward with the case. For the fear of job loss, some would even forgo suing their employer for compensation.

Delayed benefits or getting less of what you deserve

At times your employer may take more time that necessary before paying you what you duly deserve as your compensation. Don’t assume anything and seek the services of an attorney, a compensation attorney can equally help out in such a situation. If so don’t accept for the fear of falling out with your employer or losing your job, instead look for a compensation attorney to help speed up the process and ensure you get what’s rightfully yours.

Unjust dismissal

The law protects you against any retaliation by the employer as a result of you filing a case against them. He may decide to unjustly fire you from your job as a result. He would investigate the reasons for your dismissal and take the necessary actions against the employer.

Filing a third party claim

A third party in such a case may be another person’s negligence or a defective product among other things. If so, the compensation attorney you hire can be able to help you file a claim against them and get additional compensation beside what you get from the employer.

For good medical treatment

In most states, there are employer -specific physicians who would treat the employee for the injuries suffered. Unfortunately the treatment may be poor since they may be all about making one to return to work as soon as possible. A compensation attorney will work to ensure you get quality treatment services from a health provider that has your interests in mind.

What most people don’t know is that there is a time limit for filing for compensation lest it becomes invalid-this is due to the statute of limitation laws that may vary from state to state. The law will always be on your side, it only takes you to find a competent compensation attorney to get the justice you deserve.