Our Philadelphia Insurance Bad Faith Attorney Explains Bad Faith in Disability Insurance Claims
When an insurance company refuses to pay your disability claim without a reasonable basis for denial, they may be acting in bad faith. Your insurance company is required to handle your claim “in good faith and fair dealing,” which means accepting valid claims, providing reason for claim denials, and handling claims in a timely manner, among other reasonable practices. As an insured you have the right to question how your claim was handled to determine if your insurance company withheld benefits that were warranted under your policy. A Philadelphia insurance bad faith attorney from our national disability insurance law firm investigates bad faith insurance claim denials to determine if an insurer unreasonably denied disability insurance claims.
Examples of a Insurance Bad Faith Claim
Situations giving rise to a insurance bad faith cause of action can vary greatly. It can be established by assessing the company’s conduct solely on your claim or by documenting its pattern and practices. A disability insurance company can violate its duty to you and act in bad faith in several ways, including:
- Failing to reasonably investigate a claim
- Withholding disability insurance benefits without a reasonable basis
- Delaying the payment of a valid claim for an unreasonable length of time
- Denying valid claims
- Underpaying the disability insurance benefit
- Requiring unreasonable Proof of Loss during the claims process
- Unjustifiably terminating coverage under the policy after a claim has been made
- Unfairly settling claims for less than fair value
A Philadelphia Insurance Bad Faith Attorney at Seltzer & Associates thoroughly evaluates every claim to ensure the disability insurance company complied with its duty to act in good faith. Even if an insurance company is paying a claim, or agrees to reinstate a claimant’s benefits, a claim for bad faith may still be appropriate. A successful bad faith claim provides for damages beyond the reinstatement of your benefit. The damages are punitive in nature and meant to punish the disability insurance company for its wrongful conduct. The law and scope of damages for a bad faith claim vary by state, but are litigated in either state or federal court.
Know When It’s Time to Take Action Against the Insurance Company
A bad faith cause of action is appropriate when a disability insurance company breaches its duty to act in good faith toward its insured when administering and settling a claim. Your disability insurance policy is a contract that requires your insurance company to act in “good faith” toward you while addressing your claim. If you believe that your insurance company is not acting in an appropriate manner, contacting a Philadelphia Insurance Bad Faith Attorney is your best option to ensure you maintain your disability rights and are paid what’s owed to you according to your individual policy.
How a Philadelphia Insurance Bad Faith Attorney Works for You
It can be difficult for non-lawyers to distinguish between a routine denial of coverage and conduct that rises to the level of bad faith. After all, your insurance company won’t admit that they are acting in bad faith regarding how they handle your claim. Instead, they will come up with plausible explanations as to why they haven’t yet processed your claim or why you do not qualify for benefits. Often, our medical professional clients do not know how to refute these arguments, and unfortunately, take them at face value.
In addition, non-lawyers don’t know how to pursue a claim for bad faith against their disability insurance company, which is a separate proceeding from the claim process they are already navigating for their disability benefits. For many, the prospect of suing their disability insurance company is overwhelming as they have already lost income due to their injury, physiological illness, psychiatric disorder or addiction. As a result, they simply give up and never receive the benefits they are entitled to under their individual policy.
If you suspect your insurance company is acting in bad faith, you should at least speak to an experienced Philadelphia Insurance Bad Faith Lawyer about your potential claim. Our team can do far more for you than you might expect to ensure your claim is handled properly:
- We review your policy and explain your disability insurance company’s precise obligations under your policy and the law.
- We investigate the facts of your case to determine whether you have a potential claim for Insurance Bad Faith.
- We assemble and organize the documents and other evidence you will need to support your Insurance Bad Faith Insurance claim.
- We pursue your claim until you receive the benefits you deserve and any other amounts you may be entitled to such as punitive damages, interest, court costs, and your attorney’s fees.
Contact Seltzer & Associates for a Free Consultation with a National Disability Insurance Law Firm
Seltzer & Associates works tirelessly to help our clients get the benefits they deserve. To speak with an Philadelphia Insurance Bad Faith Attorney, contact us at 888-699-4222 to schedule a free consultation. We work with physicians, dentists, lawyers, business executives and other professionals to ensure their Individual Disability Insurance claims are being handled in good faith.
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