Disability Insurance Bad Faith Practices: How to Recognize and Fight Them

At Disability Insurance Law Group, our claims attorneys represent clients across the United States and understand that bad faith insurance practices are uncommon primarily due to stringent regulatory oversight and comprehensive legal frameworks governing the insurance industry.

State insurance commissioners enforce stringent regulations that require insurers to handle claims fairly and operate transparently. Moreover, the legal system provides robust protections for policyholders, including the ability to sue for bad faith. This comprehensive legal framework is designed to ensure your rights are protected.

These lawsuits can lead to significant penalties, including punitive damages against insurers, which can serve as a potent deterrent against unethical practices. It’s important to remember that bad faith practices can significantly hinder our client’s ability to obtain rightful benefits. And when they do, they can be effectively challenged. Here’s how to identify and address bad faith in disability insurance.

Empowering Policyholders to Recognize Bad Faith Disability Insurance Practices

By being vigilant and proactive, you can protect your rights and challenge any bad faith practices by disability insurance companies, ensuring that you receive the benefits you are rightfully due.

Some of the most common signs of bad faith disability insurance practices include:

• Unreasonable Delays

Excessive delays in processing claims or making decisions without a legitimate reason can indicate bad faith. Insurers are expected to handle claims promptly and efficiently.

• Denial Without Sufficient Explanation

If a claim is denied, the insurer must provide a clear and comprehensive reason. Vague or inadequate explanations can indicate bad faith.

• Requesting Unnecessary Information

Repeatedly asking for information that has already been provided or requesting excessive documentation that is not relevant to the claim can be a tactic to delay or frustrate the claimant.

• Failure to Conduct a Proper Investigation

Insurers are obligated to conduct a fair and thorough investigation of the claim. Skipping steps or ignoring submitted evidence can be a sign of bad faith.

• Misinterpretation of Policy Language

Deliberately misinterpreting the language in an insurance policy to deny or reduce benefits can also be an example of bad faith.

How Can You Fight Bad Faith Disability Insurance Practices?

It’s fair to say fighting bad faith insurance practices, including health, disability, accidental death and dismemberment, and long-term care insurance, to name a few, are the same actions you should take when filing a claim of any kind, so you are prepared if the worst happens.

Including:

• Document Everything

Keep detailed records of all interactions with the insurance company, including dates, times, names, and the content of conversations. Also, keep copies of all submitted forms, emails, and correspondence.

• Review Your Policy

Understanding the specifics of your policy is crucial. This knowledge can help you challenge the insurer’s misinterpretations or incorrect policy applications.

• Seek Legal Advice

Consulting with our skilled nationwide disability attorneys can be instrumental in guiding the legality of the insurer’s actions. We can represent you in negotiations or legal proceedings to compel the insurer to pay the claim and possibly additional damages for the bad faith actions.

If we suspect bad faith, we will file a formal complaint with your state’s insurance commissioner’s office to investigate the insurance company’s practices and may mediate to resolve the issue.

Contact Our Skilled Disability Insurance Claims Attorneys Today

Contact our skilled disability insurance claims attorneys nationwide today by calling (954)-989-9000 or online to schedule a free and confidential case assessment. We can use our over 50 years of combined experience to help you produce the best outcome for your claim.