Individuals in North Carolina may receive services from their insurance company that could qualify for an insurance bad faith claim. Bad faith conduct might occur in a number of circumstances. Our Raleigh insurance dispute attorneys provide a few common examples below. Policy holders should keep in mind that North Carolina law provides that victims of bad faith conduct could be entitled to punitive damages in addition to any other compensation due to them through their policy.
Examples of Insurance Bad Faith:
Failure to thoroughly investigate a claim.
Insurance companies that preemptively decide if they will pay a claim or how much they will pay on a claim without conducting a proper investigation could be acting in bad faith. Insurance companies have a duty to fully investigate a claim, the extent of which should be outlined in their policy and/or provided for under state law. Insurance companies might avoid investigating a claim for a number of reasons: They don't think policy holders are aware of regulations, they believe the investigation will force them to pay more to the policy holder, or they may be trying to avoid the expense of an investigation.
Refusing to settle your case or reimburse you for the total amount of your losses.
Insurance companies must provide what is included in their policies. Some policy holders will accept denials or insufficient payouts because they are unaware of the law and their ability to re-file a claim or an appeal.
Unfair denial of benefits to a claim an insurance claim that should have been paid.
Similar to the previous situation, some insurance companies rely on the ignorance of their policy holders and hope that most will not file an appeal or complaint.
Extended delay in making payments to you, the policyholder.
In some situations, the insurance company accepts their responsibility to pay the policy benefits, but instead of making these benefit payments in a timely manner they hold on to funds or create delays so that they can hold on to their money longer. This is not a fair consumer practice and leaves the policy holder in a risky financial situation. The policy holder either has repairs, medical bills, or needs to replace items due to damage associated with their claim--all of these matters need to be paid for and could leave the policy holder in jeopardy while they wait for their insurance benefits.
Failure to defend you if you have been sued under a policy containing liability provision.
Good faith and fair dealing are obligations parties have in contracts, including insurance policy agreements.
If you or a loved one have experienced one of the situations above, you could have a claim for bad faith insurance. This can occur with any type of insurance: Homeowners, auto, liability, health, and more.