What To Expect When In Lawsuit Based On Bad Faith Insurance?

An insurance company’s refusal to cover a claim could become the basis for a lawsuit. The plaintiff in such a lawsuit would have reason to charge the insurance agency with bad faith.

Actions suggested, after claimant has learned that the insurer has refused to grant coverage of reported damages

• Ask to speak with adjuster’s supervisor
• File a complaint with the appropriate department in the state government
• If those actions fail to achieve the desired result, get in touch with a Personal Injury Lawyer in Huntsville.

Requirements of plaintiff that has chosen to sue the insurance company

Produce proof of the company’s improper actions; show that it has not responded to a valid and reasonable demand.

Present information on all the actions that the insurance agency might have taken, but failed to do so

–It did not offer a reasonable and valid explanation for its lack of response to the plaintiff’s demand letter: Some insurance companies give their own interpretation of the terms in the defendant’s policy. That would not qualify as a valid explanation, because it would not be an unbiased interpretation.
–It did not process the claim in a reasonable amount of time
–It did not investigate the submitted claim.

Could a claimant, working with a lawyer, have any other reason for initiating a lawsuit that had been based on bad faith?

Yes, that action could be taken, if the adjuster had not responded to a counteroffer, thus stalling the negotiations. But no client-lawyer team should initiate such a lawsuit until certain other actions have been taken.

It would be the claimant’s job to inquire about the reason for the lack of a response. That inquiry should be included in a letter to the adjuster’s office. After sending such a letter, the claimant/sender would have an obligation to seek an answer, during the next conversation with the adjuster.

The adjuster might say that he or she needed time for speaking with the supervisor. In that case, the claimant should ask for a date when the supervisor might provide the anticipated guidance.

If the adjuster’s reply did not come soon after the stated date, then the client-lawyer team could contact the supervisor. If still no effort to proceed with the negotiations, the same team would have a reason for suing the insurance company with the uncooperative adjuster.

The plaintiffs, the client-lawyer team would need to offer proof of the fact that the insurance agency had failed to provide the claimant with a chance to pursue a submitted personal injury claim. If presenting evidence of that allegation, the plaintiffs would have legal basis for their charge of bad faith. If the court did not receive such evidence, no lawsuit would be possible.