Understanding Your Insurance Company’s Duty of Good Faith
Insurance companies aren’t known for communicating clearly and concisely. No matter how diverse your vocabulary is or how developed your reading abilities are, reading your insurance policy is likely to give you a headache after a few minutes. That’s why it’s so easy for insurance companies to act in bad faith and wrongfully deny policyholders the benefits they are entitled to.
It’s easy to feel powerless when your insurance company plays games with your claim. We’re here to change that. When you hire DeWitt Algorri & Algorri, your insurance company knows it’s time to take you seriously. Call our team at 855-WINNING (946-6464) to schedule a free consultation right now.
Why Do Insurance Companies Operate in Bad Faith?
To put it simply, insurance companies operate in bad faith just because they can. Think about what the average policyholder has and what the insurance company has. Your insurance company knows the intricate details of your policy and they know that you probably don’t know how to interpret it accurately. They know what loopholes are built into the policy and how to take advantage of them. They know what profit margins they need to hit to keep executives happy and what tricks work to deny claims. When all else fails and a policyholder actually stands up to them, they still often come out on top—they have massive legal teams and enough money to steamroll the little guys.
It doesn’t have to be that way, though. With the help of a bad faith insurance lawyer, you can fight for proper handling of your insurance claim.
What California Law Says About Acting in Good Faith
So insurance companies have the upper hand in most dealings. What is the average consumer supposed to do? There are numerous laws in place to keep insurance companies in line and empower consumers to advocate for themselves. Many consumers still don’t know their rights or how to protect them. California law states that insurance companies must act in good faith when processing claims, and the California Department of Insurance holds companies accountable. To act in good faith, an insurance company must act in a fair and reasonable manner with clients. They have to evaluate claims fairly and streamline processes to keep them efficient. Perhaps most importantly, they must uphold the terms of the policies they sell to consumers.
This means that when they process claims, insurance companies cannot go digging for reasons to deny them. They must process them in a fair manner. They also cannot act against the terms of their policies simply because they know consumers won’t catch on. Bad faith insurance lawyers hold insurance companies accountable when they violate their duty.
Does the Other Party’s Insurance Company Have a Duty to You?
While operating in good faith seems like a clear concept, it does get muddled a bit when you bring in first party and third party claims. First party claims are claims that you make with your own insurance provider. In these claims, your insurance company does owe you a duty of good faith.
Third party claims are those that you file with an insurance provider other than your own—for example, when you are hit by a car or you slip on the ice at a place of business. You are not the policyholder in these cases, and as a result, the company does not owe a duty of good faith to you. They do not have an insurer/client relationship with you and, as a result, owe you nothing. This is very important to understand, since it shows why hiring a personal injury lawyer is so important after an accident.
How to Handle Claim Issues With Your Insurance Company
Your insurance company is holding up your claim, giving you the runaround by asking for mountains of documents, and refusing to return your phone calls. You’re running out of time, energy, and patience. That is exactly what they want to happen. Instead of giving up, make a call to a bad faith insurance lawyer and explain your situation. Your attorney will fight aggressively on your behalf and hold the insurance company responsible for their mistakes.
Choose DeWitt Algorri & Algorri for Your Bad Faith Insurance Case
Insurance companies have an obligation to their policyholders, and they ignore that obligation far too often. The best way to protect yourself and your claim is to talk to the team at DeWitt Algorri & Algorri. Our extensive experience in bad faith insurance claims makes us the natural choice for your case. Get started now and let us fight for you. Contact us online or call 855-WINNING (946-6464) to set up a consultation.
Mark Algorri has successfully represented individuals and their families in matters involving serious and catastrophic injuries, insurance claims denials, and wrongful deaths, achieving a success rate of 99 percent for our clients.
