An insurer has the duty to provide coverage of the policyholder. By the same token, an insurer has the duty to uphold the terms of a purchased policy. A bad faith insurance company does not live up to those promises.
Strategies that match with bad faith practices:
Misinterpretation of policy language: a strategy used when the insurance company has chosen its own interpretation for a given term used in a customer’s policy. Some insurers pursue such a strategy, in order to confuse a claimant, regarding the time limits for the making of a legal motion.
Misinterpretation of records: an approach that makes use of recorded facts. It implies a misinterpretation of those facts.
Enforcement of unreasonable delays: Sometimes an insurer claims that no action can be taken until a certain procedure has been completed. The same insurer might purposely delay completion of that same procedure.
Making arbitrary demands with regard to proof of loss–could involve suggesting that the claimant was partly to blame or the loss.
Ask for contribution to settlement: This might not be done in an obvious manner. Instead, the claimant might be told that he or she is partly responsible for the accident. In that way, the claimant gets forced to contribute towards the settlement.
Failing to conduct a thorough investigation–this tactic might be used in case where the victim has a serious injury. The lack of an investigation could keep an insurance company from learning the facts, with respect to a given accident-caused injury.
Monetary aspects of suing an insurance company for bad faith
The person that sues an insurance company for bad faith practices may have failed to obtain deserved compensation for an accident-caused injury. If that same person wins the suit, then he or she wins more than the desired compensation.
The legal system views a denial of deserved compensation as damages. Consequently, the winner of a bad faith case receives more than just the money for compensation.
The sued insurance company must furnish that added amount of money.
The amount of money owed to the claimant by the sued insurer could depend on the type of tactic used by the insurance company. For instance, the introduction of a brief delay might be less costly than the enforcement of an unnecessary contribution to the settlement of the case. Hence, the damage would be less, and the expected compensation would be less.
A claimant can fight bad faith practices by initiating a lawsuit. That means finding a personal injury lawyer in Lethbridge that specializes in such lawsuits. What is the cost for using such an attorney? That sort of attorney normally charges a contingency fee, a percent of the pool of money that is awarded to the plaintiff.