When you enter into an agreement with an insurance company, you expect to receive the coverage that you paid for. However, because their main priority is their own financial gain, insurance companies may not always hold up their end of the deal. If you have been in an agreement with an insurance company that has denied your legitimate claim without a good reason, you may be able to sue your insurance company.
Anyone who is interested in suing their insurance company should seek the help of an attorney. The Fayetteville insurance company lawsuit attorneys that work with Ken Kieklak, Attorney at Law, are able to help people file lawsuits against insurance companies that have denied legitimate claims. Get in touch with Ken Kieklak, Attorney at Law, as soon as possible to discuss your options regarding a lawsuit. Call (479) 316-0438 today.
When to Sue an Insurance Company
Insurance companies are expected to uphold their obligations to policyholders by abiding by the terms outlined in their contract. The following are obligations that insurance companies are expected to uphold with policyholders:
- Timely and adequate investigations into claims
- Paying claims where liability is obvious
- Provide reasonable explanations for denying claims
- Defend policyholders in liability lawsuits in which one of the claims is covered by a liability policy
- Accepting claims based before the period of contestability has passed
Policyholders that believe that their claim was denied improperly should consider suing their insurance company. Get in touch with an attorney soon to learn more about how you can use their help to make sure that your insurance company honors its obligations.
Actions that Support a Bad Faith Claim Against an Insurance Company in Arkansas
In Arkansas, when an insurance company fails to uphold its obligations to policyholders, it is frequently known as a bad faith case. Insurance companies are legally obligated to honor legitimate claims. The only reasons that allow an insurance company to legally deny a claim is if the claim was fraudulent, if the policyholder has not adhered to their contract, or if the claim was not covered in the insurance policy. Denying a claim for any other reason is considered to be a case of bad faith.
The following are acts that may be committed by insurance companies that could be considered to be bad faith:
- Denying legitimate claims, failing to make payments for legitimate claims, or citing inaccurate information to justify the denial of a claim
- Refusing to investigate claims made by policyholders
- Refusing to negotiate with policyholders
- Denying coverage to policyholders without investigating
- Taking too much time to confirm whether or not the policyholder’s claim is legitimate, postponing investigation or payment, or switching insurance adjustors to delay the time it takes to process the claim
- Misrepresenting language in contracts
- Failing to provide an explanation of why the policyholder’s claim was denied, withholding information that is relevant to the claim, or using false medical or legal terms in regard to the policyholder’s claim
What to Do If Your Insurance Company Acted in Bad Faith
If you believe that your insurance company has acted in bad faith regarding your claim, you should document any evidence that can be used in a lawsuit against the insurance company. When you file a claim with an insurance company, make sure that you take notes on everything that happens. Record all details regarding the incident that led to the filing of your claim. It’s also advisable to keep all of your correspondence with the insurance company; make sure that mail has a date on it, make copies of things, and keep emails archived. You should also keep a log of phone calls and record them, if possible.
When dealing with an insurance company, it’s also important to behave politely. Failing to act and correspond with the insurance company respectfully can hurt you at a later date. You should respond to any correspondence that the insurance company sends promptly and thoroughly.
When you are ready to begin the process of filing a lawsuit against your insurance company, your lawyer will send a letter to the insurance company, which will outline reasons for suspecting that they acted in bad faith. You will have to sign and date the letter and send it to the insurance company via certified mail.
Damages Available in a Bad Faith Case in Arkansas
If you win a bad faith case against your insurance company, you may be entitled to certain damages. The damages you are able to receive in a bad faith lawsuit against an insurance company include compensation for your initial accident or injury for which you made a claim, damages for having your legitimate claim denied in the first place (including attorney’s fees and court costs), emotional distress related to your accident or injury, economic loss from an inability to work or maintain a business, and a loss of credit reputation. You may also be able to receive punitive damages if you can prove that the insurance company was acting with the intention of harming you.
Fayetteville, Arkansas Insurance Lawsuit Attorney
If your insurance company has denied a legitimate claim that you’ve made, you should seek the assistance of an attorney that is experienced in the field of lawsuits against insurance companies. The Fayetteville insurance company lawsuit attorneys with Ken Kieklak, Attorney at Law, have the ability to help clients file lawsuits against companies that have not held up their end of the insurance agreement. Contact Ken Kieklak, Attorney at Law, immediately to learn more; call (479) 316-0438 today.