Insurance is a safety net for many families in the event of an accident. Many need the money promised in order to recover and return to a normal life in a reasonable amount of time. Unfortunately, according to the website of Smith Kendall, PLLC, it is not uncommon for insurers to try to avoid liability so that they do not have to pay families the money they owe. There are three main areas in which insurers can act in bad faith: coverage disputes, deceptive trade practices, and code violations.
Coverage disputes are when you and your insurer disagree over whether or not particular damages are covered in your plan. This can occur from deceptive practices and representation by the insurer that makes you believe something is covered when it is not, miscommunications about your coverage, or sudden changes to your coverage that were not properly explained to you.
Some insurers also participate in deceptive trade practices. This can include false advertising, exaggeration or misrepresentation of coverage, false statements and flat out lies about the necessity for certain packages or coverage. Often these are ways to lure you into purchasing coverage that is not beneficial for you or make you believe that more is covered in your plan.
Sometimes you are in the right of the situation and your insurer flat refuses to pay you what you deserve. This is a violation of insurance codes and is illegal. The law requires insurers to honor the coverage plans you have been paying for, and in the event of an accident or damage, they must make the payments they owe you in a timely manner.Read More