Insurance Bad Faith Claim
Finding a lawyer who handles an insurance bad faith claim can be difficult. If you have a insurance bad faith claim you should have the best attorney available to you. RepresentYou can potentially give you access to some of the best insurance lawyers in your area. Sometimes, it may also be possible to get an insurance lawyer who works on a contingency fee basis. This means you would not pay unless you win. Insurance companies have many legal obligations and duties to their policyholders. Specific obligations vary from policy to policy but depend greatly on whether the claim is considered to be “first party” or “third party.” The California Department of Insurance (CDI) highly regulates insurance companies and if a insurance company is a acting in bad faith, contact RepresentYou for a free consultation.
First Party Claim:
First party insurance may be defined as: A insurance companies coverage of property that becomes damaged, such as a real property like a house or a automobile. When there is a first party claim the insurance companies by law have a “good faith” obligation to investigate the damage, of the property and determine whether or not the damage is covered by the insurance policy, and pay a fair value (or what is covered in the policy) for the damaged property. When a insurance company does not do this it is considered insurance bad faith. At RepresentYou.com we can help you find a insurance bad faith lawyer for a first party claim. Insurance bad faith claim on behalf of the insurance company, in fist party context usually results from an insurance companies improper investigation and valuation of damaged property. Insurance companies may also refuse to acknowledge the claim at all. In less prevalent circumstances bad faith in the first party context can arise through personal injury cases involving health insurance and life insurance policies.
Third Party Claim:
Most often, “third party” claims deal with the defense coverage of lawsuits. In third party insurance bad faith cases, insurance companies have two distinct duties, both which must be fulfilled in good faith.
First: An insurance carrier is legally obligated to cover defense charges even if some or all of the lawsuit is not covered by the insurance policy itself. Some insurance companies provide policies which have clauses that protect insurance companies from paying defense costs however the default ruling is that the insurance company must cover all of the defense costs regardless of policy limits, this depends on your policy and insurance company.
Second: The insurer has a duty of compensation to policy holders, which is the duty to pay a judgment against a policyholder, up to the total limit of coverage. As a result of this, most insurance companies take care and exercise a great deal of control over litigation.