Law Office of Rocky K. Copley, A Professional Corporation

Advocating justice for over 30 years.

Insurance Coverage and Bad Faith Attorney

Insurance Coverage and Bad FaithAn insurance policy is a legally binding contract. However, an insurance policy is a special type of contract where the policyholder pays a premium and hopes that he will never need to utilize the insurance. When a policyholder has paid the premiums and the insurance carrier refuses to pay the benefits under the policy, or unreasonably delays the payment of the benefits, the insurance company has breached its insurance policy contract. When an insurer fails to pay the benefits under the policy (the contract) the policyholder may bring a claim for breach of contract and insurance bad faith. Bad faith is something more than simple negligence. Where the insurance carrier acts unreasonably by failing to fulfill its legal or contractual obligations, misleading the policy holder or violating basic standards of claim handling, such conduct can amount to bad faith which entitles the policy holder to both the contractual benefits as well as damages for the emotion upset and mental suffering or other damages caused by the insurance carrier’s conduct.

The conduct of an insurance company that gives rise to a bad faith claim can arise in many circumstances. Where an insurance company attempts to rescind your policy (cancel your policy) retroactively after you have filed a legitimate claim, such conduct is known as insurance rescission and can constitute post-claims underwriting which is illegal. Such conduct can give rise to a claim of insurance bad faith for which the policyholder is entitled to damages.

Insurance companies sometimes refuse to settle and a policyholder has a judgment entered against him that exceeds the limits policy. When that happens, the policyholder can suffer severe financial consequences personally and to his business.

In other situations, insurance companies sometimes deny a defense and refuse to cover a claim on the basis that the claim is not covered under the terms of the policy because of the application of an exclusion in the policy. Special laws have been developed over the years that will be applied to interpret the terms of an insurance policy. Most policyholders have little knowledge or understanding of how their insurance policy works or how the law has interpreted the terms of insurance policies. Rocky K. Copley has been involved in insurance coverage and insurance bad faith claims for over three decades. If your insurance company has illegally cancelled your policy, refused to settle a claim, refused to pay a claim for theft loss, business claim, fire or flood damage, uninsured motorist policy, underinsured motorist policy or any other type of insurance claim, you should contact Rocky K. Copley who will assist you in evaluating your claim and pursuing the claim to recover your contractual benefits as well as the consequential damages caused by the insurance carrier’s conduct. In certain circumstances, attorney’s fees incurred to recover your contractual benefits are also recoverable as damages. Please contact Rocky K. Copley for a free initial consultation today.

Related Articles

Can You Open the Policy on UM/UIM Claims? Wednesday, 01 November 2017 Liability insurance policy limits can be “opened” when an insurance carrier unreasonably fails to accept a settlement offer within its policy limits. READ MORE
New Exclusions in Renewal Policy are Ineffective without Notice to Insured Sunday, 01 October 2017 People frequently renew their homeowner’s, auto, health insurance, or other insurance policies and pay no attention to changes that have occurred in their policy. READ MORE
Excess Carrier Owes Duties to Insured Monday, 01 May 2017 Attorneys may sometimes find themselves in the position of having a primary and excess carrier involved and the excess carrier takes a back seat and does nothing while settlement negotiations are ongoing. READ MORE
Recovery of Property Damages Caused by Uninsured Motorist Wednesday, 01 March 2017 Why is your client forced to pay a deductible for vehicle property damages caused by an uninsured motorist? READ MORE
Medical Payments Offsets and Reimbursement Rights Wednesday, 01 February 2017 Auto insurance policies frequently provide rights of reimbursement or credit rights. READ MORE
Consent of Carrier Not Required for UIM Coverage Thursday, 01 December 2016 Special provisions apply to underinsured motorist coverage that do not apply to uninsured motorist coverage. READ MORE
Carrier's Duty to Preserve Order of Criminal Restitution Tuesday, 01 November 2016 Many practitioners are unaware that they are not required to give up their right to court-ordered restitution from the criminal proceedings in order to receive the insurance proceeds from the policy covering the criminal defendant. READ MORE
Update on Insurance Carrier’s Duty to Initiate Settlement Discussions Friday, 01 July 2016 Federal court decisions support that there is a duty of an insurance carrier to initiate settlement negotiations once liability has become reasonably clear. READ MORE
Applying Common Fund to UIM Claims Friday, 01 April 2016 The Common Fund Doctrine should be applied in the uninsured motorist setting under the holdings of Lee v. State Farm and the other cases that have described and analyzed the purpose of the Common Fund Doctrine. READ MORE
Medical Payments Offsets And Reimbursement Rights Monday, 01 February 2016 The medpay offset reduces only the value of the insured’s total claim for UM/UIM benefits and not the actual UM/UIM coverage limits themselves. READ MORE
You are here: Home Insurance Coverage and Bad Faith