Consistently paying for insurance coverage means that customers should expect specific benefits and financial coverage if they are in an accident or encounter a situation that falls under the definition of the company’s pay-out clause. However, sometimes insurance companies do not pay out the true value of a claim or respond in other unfair ways or in bad faith. This can often happen during very difficult moments following an accident, and policyholders often don’t understand their full rights. That’s when it may be time to speak with a Los Angeles insurance bad faith lawyer.

If you or a loved one are struggling with a bad faith insurance claim, and the company refused to meet its obligation, the MKP Law Group, LLP team understands the financial problems this situation creates. Working with an experienced Los Angeles insurance bad faith attorney can make a significant difference when going through the legal process to receive payment. Our team is experienced, attentive, dependable, and tenacious so call us today at 310-285-5353 to schedule your 100% free consultation.

Most importantly, clients do not have to throw good money after bad. At the MKP Law Group, LLP, the team works on a contingency fee basis, which means that we do not get paid unless you win your case. There are no out-of-pocket upfront costs, which means you can even the playing field when dealing with a bad faith insurance claim against an insurance company with deep pockets.

Do You Need to Hire a Los Angeles Insurance Bad Faith Attorney?

Customers pay insurance companies to mitigate financial damages. The idea is to pay the company an agreed-upon monthly premium. In return, the company will then payout in the event of an accident.

The expectation is that the insurer offers a fair settlement when the customer meets specific requirements spelled out in the policy. If you find that an insurance company is not negotiating with you in good faith, it is time to enlist the assistance of a Los Angeles insurance bad faith attorney.

What is a Bad Faith Insurance Claim?

Attorneys know what a fair negotiation process is supposed to look like. For this reason, they can guide you through a suspected bad faith insurance claim. For example, insurance companies are for-profit businesses that answer to shareholders. They have to show profits to have investors.

Some companies have taken the step of denying claims they should have paid. Others offer a payout far below what the customer is entitled to receive. Lawyers refer to these practices as bad faith negotiations; an insurer is trying to protect its profits by refusing to fulfill its financial obligation to a customer.

Examples of bad faith insurance claim handling vary but may include the following types of situations.

  • The company does not act quickly and has significant delays in settling the claim. Delays can lead to customers dealing with further financial difficulties.
  • Faulty or delayed claim investigation.
  • The company denies a claim without valid grounds. If it does offer a payout, the settlement amount is below what the customer has a right to expect.
  • A claims adjuster tries to intimidate you into accepting a lower settlement. Also, the company might make it cumbersome to apply for benefits by constantly asking for more documentation.
  • Lack of disclosure. Another problem is the company’s failure to explain the appeals process to you. Representatives might misrepresent insurance policy limitations, liability, or duty of investigation.

When the insurance company fails to protect the customer’s best interest and stand by the contract between the two parties, this is when a valid claim of bad faith presents itself.

Other situations when an insurance company does not conduct fair dealing includes when they do not mount a legal defense against a third party to protect their customer’s policy. Or, if the customer retains their own counsel, the company will not pay legal defense costs.

These are the types of bad faith practices a Los Angeles insurance bad faith attorney recognizes and takes on.

Not Bad Faith: When There is a Legitimate Error or Mistake

An insurance company can make a mistake.

A good example is an assessment error. The adjuster erroneously failed to recognize the total value of a customer’s claim. This is not an example of a bad faith situation.

That said, if the insurance company is slow to acknowledge the mistake or refuses to fix it, then there may be a consideration of bad faith, and a bad faith claim could be considered necessary.

Bad Faith Can Occur with Any Type of Insurance Policy

In bad faith, one of the most frequently discussed insurance products is car insurance. For instance, when a policyholder is in an accident and cannot get the insurance company to make a fair settlement on their behalf. Instead, the insurance business might attempt to declare the customer responsible in order to minimize payout.

However, many types of policies are also susceptible to bad faith actions. When a health insurance company denies a claim, delays its decision-making process, or fails to reimburse a doctor at the full agreed-upon cost, this could leave the insuree responsible for making up the rest of the money. If the insuree has valid coverage that they’ve been diligent in paying, they should seek legal advice to understand their rights. Many times, customers don’t want to fight with the insurance company and are left footing a bill that should be sent to the insurance company.

Customers may have similar experiences with disability insurance policies, life insurance denials, property insurance limitations, and even product liability.

What Should You Do if You Suspect You Have Grounds for a Bad Faith Insurance Claim?

It is challenging for someone unfamiliar with insurance lingo and legal-speak to fight common bad faith insurance claims. In many cases, they do not see the warning signs and try to work with the insurer in good faith. However, having a Los Angeles insurance bad faith attorney at your side makes a difference.

For starters, the policyholder does not have to spend precious time negotiating with the insurance company. When you are dealing with the aftermath of an accident or other covered incident, you often have other things to take care of. Besides that, a lawyer knows how to approach an insurance company acting in bad faith and understands the laws to navigate an insurance bad faith case.

Most importantly, there are ways to work with the insurance company to ensure that they respect their legal obligations. In addition, the very act of bad faith negotiation could entitle the customer to further benefits. For example, the insurer may be guilty of breach of contract, which could entitle the customer to additional damages. Or perhaps the customer decides to sue for financial losses, punitive damages in the case of fraud, and legal fees.

Contact a Los Angeles Insurance Bad Faith Attorney at MKP Law Group, LLP Today

The team at the MKP Law Group, LLP, believes in fair settlements. When an insurance company tries to deprive a customer of this right, our law firm goes to work. Schedule a free consultation with a Los Angeles insurance bad faith lawyer who is as experienced as they are tenacious to see justice done on your behalf.

Our attorneys are highly experienced in handling bad faith cases and have obtained large settlements on behalf of our clients. Call 310-285-5353 or fill out the contact form below to discuss your case and legal options.

We proudly service clients in the city of Los Angeles and other cities in Los Angeles County including Santa Monica, Westwood, West Los Angeles, Beverly Hills, Long Beach, Pasadena, Glendale, and more. We also represent clients in Orange County, Riverside County, and San Bernardino County as well on everything from car and truck accident cases in Imperial County and Riverside to slip and fall injuries in San Bernardino and Orange County or wherever you may be in the LA and surrounding regions.

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