Lexington, KY Insurance Bad Faith AttorneyWhen insurance companies don’t play by the rules
Believe it or not, insurance companies have to play by the rules and obey the law too. When they do not, the people they harm can sue them for “bad faith.” In Kentucky we have common law bad faith as well as statutory bad faith called the “Unfair Claims Settlement Practices Act.” The Act lists many specific things insurance companies do that are considered bad faith and for which a person can sue.
The things insurance companies do that are considered bad faith can take many forms. Two common claims involve the failure to provide a person with a defense in a civil liability case against them and the failure to pay under a life or disability policy.
Sometimes, insurance companies will even misrepresent the coverage or amount of coverage that may be available on a claim.
The law in Kentucky recognizes that not only the person who bought and contracted for the insurance may have a claim of bad faith, but also a person who has a claim under another person’s insurance. The person who sues the insurance company must show: that the company’s insurance contract obligates them to pay the underlying claim; that they have no reasonable basis to deny the claim; and they knew there was no reasonable basis or acted with reckless disregard in the denial. If the wronged person can prove their claim, they are entitled to not only the value of the benefits denied, but also attorney’s fees and perhaps even punitive damages.
If you believe you have been wrongfully denied coverage on your insurance claim, be sure to collect and save all the documentation about it and, contact us. We can evaluate your case with experts in the industry and if you are the victim of insurance bad faith, we will work with those experts to get you the compensation you deserve.