Sometimes during the course of business, insurance companies might disagree about matters regarding the adjustment and payment of claims on an insurance policy or bond. In some instances, bad faith claims arise and need to be litigated. Even if an insurance company eventually pays the claim, a plaintiff can still proceed with a bad faith lawsuit. In this blog, we explain what rights you are entitled to in bad faith litigation.
Common reasons for bad faith claims include:
- Denying an insurance claim without a valid reason
- Improper valuation of a claim or lowballing a settlement offer
- Failing to reasonably investigate a claim
- Refusing to payout on a claim without a proper investigation
- Failing to accurately disclose the limits on a policy
- Unjustly delaying investigation or payment of a claim
- Misleading a claimant or being dishonest about policy limits or policy language
After you and your attorney have filed your bad faith lawsuit, there is a chance that the opposing party will want to enter into a settlement agreement. If you reject their settlement, your case will move onto what is known as the discovery process. During this process, your attorney can request for the insurer to produce documents relevant to the case. They will also be asked to answer written questions called interrogatories.
Your lawyer can also question the claims adjuster under oath, as well as supervisors and other representatives of the insurer. Perhaps the most important piece of evidence your attorney can request is the actual claim file. The claim file will contain the insurance adjuster's notes about your claim and might also contain evidence that can prove the insurer was neglectful or fraudulently handled your claim.
Have more questions about bad faith litigation? Contact our Marietta bad faith litigators to learn how we can assist you today.