Bad faith insurance claims occur when an insurance carrier breaks its duty to engage in fair dealings and act in good faith.
While many people believe that insurance carriers go out of their way to provide compensation to insured, there are actually a number of ways in which insurance carriers are known to act in bad faith.
Bad Faith By The Insurance Company
Bad Faith By The Insurance Company
The Louisiana Bad Faith Statute For Property Damage Claims provides an insurer breaches its duty of good faith and fair dealing by any of the following acts:
- Misrepresenting pertinent facts or insurance policy provisions relating to any coverages at issue.
- Failing to pay a settlement within 30 days after an agreement is reduced to writing.
- Denying coverage or attempting to settle a claim on the basis of an application which the insurer knows was altered without notice to, or knowledge or consent of, the insured.
- Misleading a claimant as to the applicable prescriptive period.
- Failing to pay claims when the failure is arbitrary, capricious, or without probable cause.
Bad Faith by The Insured Homeowner, Business Owner Or Their Representatives
Louisiana law now also provides the insured, claimant, and representatives of the insured or claimant have a duty of good faith and fair dealing. The law provides bad faith actions committed by the insured, claimant, or his representative are any of the following:
- Failing to comply with contractual duties established by his insurance policy, including providing requested information regarding the claim, making demands on the insurer, setting deadlines, and attempting to settle the claim.
- Misrepresenting facts or insurance policy provisions that relate to any coverage at issue.
- Submitting an estimate for damages that lacks a basis for coverage under the policy terms or lacks a good faith evidentiary basis.
For various time periods and penalties associated with the Louisiana Bad Faith property damage insurance claims, see Act 3.
Speak with an Experienced Insurance Lawyer
Hopefully, it will never happen to you, but if an insurance carrier wrongfully denies your insurance claim, it is important to understand that you have a right to pursue compensation.
Contact Hurricane Lawyer today to schedule your available options to pursue compensation.