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What is an Insurance Bad Faith Claim?

Insurance Bad Faith

Insurance is a way to provide a safety net in case you suffer serious injuries, damage to your property or become involved in a lawsuit.

As a policy holder, the insurance company has a duty to:

  • Provide coverage
  • Uphold the terms of the policy
  • Pay any valid claims covered by the policy

With that comes an implied duty of good faith.


Insurance Bad Faith in Missouri

But what happens when there is a breach of this contract – a failing to uphold these duties by

  • Using deceptive practices
  • Intentionally misinterpreting policy language
  • Using unreasonable delays
  • Making arbitrary demands or using abusive tactics

An insurance company operates in bad faith when it fails to pay a legitimate first party claim by an insured. This means that your insurance company has refused to pay a claim – for instance, property damage or health insurance claim – without a reasonable basis or without investigating the claim in a timely manner.

In the state of Missouri, when insureds and insurers have a dispute about payment on a claim, Missouri statutes give you the right to bring lawsuits against insurance companies for bad faith, referred to as “vexatious refusal to pay.” 

In Missouri, this cause of action is governed by Mo. Rev. Stat. 375.420 and Mo. Rev. Stat. 375.296.


Do you have an insurance Bad Faith Claim?

As the insured, the burden of proof lies with you. Insurance law in Missouri can be complicated.  Best advice is to discuss your situation with an attorney knowledgeable in insurance bad faith, however, check to see if you have these elements:

  • Issuance of an insurance policy within the scope of Mo. Rev. Stat. 375.420 to a Missouri resident
  • The claim was in accordance with the terms of the policy
  • Insured sustains a loss and makes claim against the insurer
  • Claim is denied without reasonable cause or excuse

Insurance companies can face liability beyond the limits of the insurance policies they issue if they operate in bad faith.


HOW CAN WE HELP YOU?

DO YOU NEED LEGAL ASSISTANCE?

When you want to obtain compensation for your personal injuries, you wlll need to prove who was at fault. Depending on your situation, this can get complicated. With the help of a personal injury lawyer the odds of a successful outcome increase.

Contact the capable counsel at Nash & Franciskato. One of our experienced staff will speak with you personally and will provide you with a free, no-obligation case evaluation.

CONTACT US FOR A FREE REVIEW OF YOUR CASE

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