Do Insurance Providers Have a Duty to Handle Claims Timely?
The concept of insurance is fairly straightforward. In exchange for a premium, an insurance provider will agree to cover certain losses tied to risks. When put into practice, the process of understanding insurance coverage and responding to claims is more complex. Insurance policies tend to feature nuanced terms. When claims are filed by policyholders, insurance providers must review these terms and determine whether the circumstances surrounding the claim meet the terms of the policy. This is reasonable, as each party to a contract must fulfill their obligations in good faith. A policyholder has several duties and obligations to meet during the claims process. Insurance providers review claims in order to ensure that they are valid. A Panama City, FL claims consultant reviews your loss and claim to ensure it has been presented properly.
Just as a policyholder must honor the terms of an insurance contract in good faith, so must the insurance provider. However, the process of reviewing a claim and determining whether or not to pay it is not always approached in this way. Unfortunately, some claims are approached in bad faith. An insurance provider may fail to properly investigate a claim before rejecting it or may mislead the policyholder about the terms of their coverage. A valid claim may be improperly rejected, delayed or only partially covered. When policyholders suspect that their insurance providers may be deliberately acting in bad faith, it is generally a good idea to speak with a Panama City, FL claims consultant. If you have concerns about how your insurance company is handling your claims, speaking with a consultant from Childress Loucks & Plunkett will allow you to make informed decisions about your legal options.
Handling Claims in Good Faith
If a provider deliberately rejects a valid claim, this is behavior undertaken in bad faith. The law recognizes that if an insurance provider deliberately fails to “make good” on a claim in a complete and timely manner that the ill-behaving provider may generally be held accountable for that decision. Depending on the nature of your situation, a Panama City, FL claims consultant will be able to help you file a bad faith claim in order to right the situation at hand.
Bad Faith Claims Assistance Is Available
In addition to receiving your proper insurance payment, you may be entitled to additional financial compensation. When an insurance provider undermines the integrity of its insurance policies, the legal system generally aims to hold that provider responsible. If you believe your insurance provider may be treating your claim(s) in an unjust manner, please consider scheduling a consultation with a Panama City FL claims consultant today.