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Can I Sue if My Insurance Company Acts in Bad Faith?

Do you suspect your insurance company is acting in bad faith? Remember that your policy is paid-for and as such, your insurance company upholds a promise to provide you insurance protection. The company further is responsible for negotiating and settling claims in good faith. If you believe that an insurance company isn’t negotiating in good faith, can you sue them for acting in bad faith?

A claim of bad faith against an insurance company arises only if the company’s adjuster has lied, committed fraud, or has gotten in the way of you pursuing the claim. An example of this could be tampering with a witness or withholding evidence. It would therefore be unwise to file a bad faith lawsuit just because you don’t agree with the adjuster, even your own. In addition, you can sue the adjuster of your own company for not giving you a specific reason for a low settlement offer.

Still suspect the adjuster for your company is negotiating in bad faith? Use the term in conversation with them. Bad faith is usually taken seriously by insurance companies and the term should get their attention. You can also put your accusation of bad faith in writing. Make sure in the letter that you refer to the conduct of the adjuster that you consider to be done in bad faith. If it is proven that the insurance adjuster acted in bad faith, the company could be responsible for paying damages above the original compensation amount for your injuries.

It is extremely difficult to win bad faith damages in court, however. This does not mean you should not pursue a case if you believe you have one. Contact the attorneys at Lowthorp Richards. We can look over your evidence and discuss your legal options regarding your lawsuit. Call us to schedule a free consultation.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Cristian R. Arrieta, Lowthorp Richards McMillan Miller & Templeman, A Professional Corporation, 300 E. Esplanade Drive Suite 850, Oxnard, CA 93036