Fountain Valley Insurance Bad Faith Lawyer
Insurance Bad Faith Attorney in Fountain Valley, CA
Insurance policies exist to protect your finances if the unexpected occurs. Whether you file a claim for a car accident, property damage, disability benefits, or other loss covered by your insurance policy, you trust your insurance company to treat your claim fairly and in compliance with the insurance policy terms. When an insurance company fails to deal with claims fairly, a Fountain Valley insurance bad faith lawyer can help explain your legal rights.
The Bentley & More LLP Approach
Every case starts with a person who has been through a unique set of circumstances. Bentley & More LLP represents consumers and employees across California. Our Fountain Valley personal injury lawyer tailor our legal approach to your specific needs and goals. We listen to the stories behind the claims to advocate for results that matter to you.
California Insurance Bad Faith Laws Explained
In general, insurance companies must act in good faith and deal fairly with their policyholders. This means investigating claims reasonably, communicating honestly with claimants, and avoiding unfair claim practices. When an insurance company unnecessarily delays or denies a claim, or fails to investigate a claim properly, it may be acting in bad faith.
Insurance bad faith claims are recognized under both common law and California statutes. For instance, California Insurance Code § 790.03 outlines specific unfair claims settlement practices. California Code of Civil Procedure § 339 also sometimes applies to bad faith-related claims involving breach of certain obligations.
An insurance bad faith claim is separate from the underlying insurance claim. In addition to requesting benefits under an insurance policy, a policyholder may file a claim for damages based on the insurer’s improper conduct.
What Is Insurance Bad Faith?
Bad faith refers to an insurance company’s unfair treatment of a policyholder. Not every denied claim is handled in bad faith. Insurance companies have the right to investigate claims and deny coverage if there are legitimate issues. Issues often arise when an insurance company puts its interests before the interests of its policyholder or fails to have a reasonable basis for decisions. Some common examples of potential bad faith include:
- Unreasonably delaying the investigation of a claim
- Failing to investigate a claim properly
- Misrepresenting the language of an insurance policy
- Denying a claim without a proper basis
- Failing to communicate with a policyholder
- Failing to give policyholders a reasonable explanation for denials
Whether these actions amount to bad faith depends on the facts of the insurance bad faith case. Every year, the California Department of Insurance receives over 170,000 requests for consumer assistance, investigates over 35,000 complaints, and ultimately recovers over $63 million for consumers.
Denied Claim vs. Bad Faith
Some policyholders believe that if their claim was denied, it must be bad faith. However, insurance companies have the right to deny claims that are not supported by the policy or facts. Instead of looking at whether the claim was denied, courts look at how the insurance company investigated the claim.
If the insurer took steps to reasonably investigate a claim before denying it, then the insurance company may have adequate defenses against a bad faith claim. On the other hand, if the insurer was unreasonable in handling claims, they may face liability in addition to the original claim.
Types of Insurance Claims That Can Involve Bad Faith
Bad faith allegations can stem from nearly any type of insurance policy. When an insurer is obligated to act in good faith toward a policyholder, statewide legal doctrines usually apply.
Some of the more common scenarios include car insurance claims, homeowners’ insurance claims, disability insurance benefits, health insurance claims, business interruption insurance claims, life insurance benefits, and uninsured/underinsured motorist claims.
Like all insurance claims, the specific facts and language of the policy determine whether bad faith has occurred.
Hire an Insurance Bad Faith Lawyer
Determining whether a delay was reasonable, an inquiry was adequate, or policy benefits were unfairly withheld usually calls for considerable consideration. Because of this, many people choose to hire an insurance bad faith lawyer to understand their claim and to learn about their options.
Fountain Valley insurance bad faith claims are typically filed in or served on the Orange County Superior Court located at 700 Civic Center Drive West, Santa Ana, CA 92701.
FAQs
What Happens When an Insurance Company Acts in Bad Faith?
An insurer who commits insurance bad faith can be liable for more than just the original claim. In some cases, an insured may file a claim for monetary damages suffered as a result of the insurer’s unreasonable claims handling procedures. For example, a court looks at whether the insurer inadequately investigated a claim, unjustifiably delayed payment, or otherwise breached its duty of good faith and fair dealing.
Is Bad Faith Hard to Prove in California?
Generally speaking, in California, proving a bad faith insurance claim can be difficult because the insured must prove more than mere denial of a claim. In many cases, the insured must prove the insurer acted unreasonably or did not deal fairly with the claim. Claim files, correspondence, denial letters, and delay records are just some examples of documents that can play a crucial role in proving an insurer breached the duty of good faith.
What Should I Not Say to the Insurance Adjuster?
You should never speculate or guess at answers to an insurance adjuster’s questions about facts. Try not to make statements that downplay damages or losses. Giving false or incomplete information to an insurance adjuster can lead to misunderstandings later. It’s advisable to stick to what you’re certain about and diligently document all discussions.
Can an Insurance Company Deny a Claim Without Investigating It?
Generally, no, an insurance company should not deny a claim without having some form of investigation. Insurance companies are typically required to perform a reasonable investigation prior to making a coverage decision. The extent of the investigation can vary on a claim-by-claim basis.
However, completely denying benefits without looking into the information that was available to them may bring into question whether your claim was treated fairly. This is very fact- and circumstance-dependent.
Contact a Fountain Valley Insurance Bad Faith Attorney
Bad faith claims involve more than mere denials. At Bentley & More LLP, we can look into your claim to see if bad faith occurred and advocate for justice for you. Contact us today to get started.
Client Testimonials
“I can’t thank Bentley & More enough, especially Steve. After my dad’s passing in a car accident, they secured a settlement we are so grateful for. From the start, they made sure we were taken care of, handling everything so we didn’t have to worry. Steve went above and beyond, always there when we needed support, and it was such a relief knowing we were in good hands. If you’re looking for a firm that truly cares, Bentley & More is the one. Highly recommend them!” – Kevin Jimenez ⭐⭐⭐⭐⭐
Bentley & More LLP Office
Address: 4931 Birch Street Newport Beach, CA 92660
Phone: (949) 870-3800
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