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What an Insurance Company Provides in 'Good Faith'

insurance good faithInsurance companies provide coverage in a variety of industries. For a premium, consumers and businesses can enjoy insurance coverage for automobiles, healthcare, professional liability, disability, travel, and any number of areas. When an individual or party purchases insurance coverage they have the opportunity to read the terms, the minimum coverage provided, and coverage limitations. In the event a policy holder files a claim they are entitled to certain services and coverage under state and federal insurance law regulations. When acting in good faith, an insurance company must make sure the policy holder is treated fairly and receives proper benefits for the claim. 

An insurance company's responsibilities include:

  • Pay or deny a claim within a reasonable amount of time
  • Treat the policy holder fairly when managing the claim
  • Provide written explanation of a claim denial
  • Attempt to find a reason to compensate the policy holder instead of denying the claim

 

If a company fails to fulfill the above, they could be acting in 'bad faith.' Policy holders who are unsuccessful in receiving benefits outlined in their policies can review our insurance dispute attorneys' tips for communicating with insurance companies. At some point the policy holder might feel overwhelmed or has exhausted all of their resources. Generally this is when the individual contacts one of our North Carolina insurance dispute attorneys. We advocate on the policy holder's behalf and can point out regulations while we directly negotiate with the insurance company, and when necessary, we can go to court for bad faith claims. 

For folks whose claim has been denied, learn about two different ways you can appeal your claim.