Insurance is a continuous fact of adult life. Many industries including healthcare, vehicle maintenance, and end of life care, have plans that involve individuals paying into a plan in exchange for help and compensation when certain circumstances lead to a claim. However, sometimes insurers will deny a claim, even when the circumstances of the claim are explicitly covered by the policy. In this case, an individual may file a legal claim on the grounds of bad faith insurance.
Bad faith insurance refers to a series of actions an insurance company takes in an attempt to avoid covering eligible claims. Insurance companies that attempt to renounce their obligations to avoid covering an expense are said to be acting in bad faith. If it is proved, bad faith insurance can be grounds for compensation.
Any person who has attempted to file for insurance benefits and believes that the insurance company is engaging in bad faith practices can file a bad faith insurance claim. This can range on any topic from car insurance to malpractice insurance claims.
If an individual is denied insurance for a claim that should be covered under their policy, that individual may be able to file a legal claim alleging bad faith. Whether a bad faith claim succeeds will depend on the terms of the insurance contract and the circumstances of the claim.