Tips On What You Need To Know When Filing A Bad Faith Insurance Claim

Bad Faith And Third-Party Claims

One of the most familiar personal injury cases is third-party insurance claims relating to serious car accidents.

An example of such a claim is when two cars collided, and one of the drivers sues the other driver. The driver that is being sued will report the suit to his car insurance company after which the Insurer hires a law firm to represent the insured with the lawsuit.

The Insurance company must pay the legal bills for the attorney as well as the settlement claim of the verdict award.

This is often referred to the Stowers doctrine which means the insurance owes the insured the duty of good faith and fair dealing.

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The Settlement Demand For The Stowers Doctrine Must Meet The Following Requirements:

  • The claim against the insured must be covered under the policy
  • The demand must be within the limits of the policy
  • The settlement demand terms must be in such a way that a prudent insurer would accept it when the possibility of being exposed to a considerable judgment is considered.

It will be advisable for you to obtain the services of attorneys from Dallas law firms to assist you with a bad faith insurance claim.

The judge or jury will be considering how the investigation of the claim was done, the defense provided, and the performance of the insurer throughout the settlement negotiations.

In the event of the judge or jury finding that the insurer did not discharge its duties to the insured faithfully, it would be acting in bad faith.

Bad Faith And First-Party Claims

A typical case of a first party claim is when, say your roof was damaged in a storm, then the insured party will submit a claim to his homeowner’s insurance company for the roof damage.

Examples Of Unfair Or Deceptive Practices Of Bad Faith Insurance

Unfair or deceptive practices of bad faith insurance are listed in Chapter 541 of Texas Insurance code:

  • Misrepresentation of certain facts or policy provisions
  • Failing to act in good faith and obtaining a fair settlement when the liability of the insurer is clear
  • Failing to explain to the insured of why the claim has been denied
  • Refuse to pay a claim without conducting a proper investigation

Bad Faith Insurance Claim

What Is Owed To A Claimant When The Insurance Company Is Acting In Bad Faith?

  • The number of damages incurred plus court fees and attorney fees.
  • An order enjoining the act, or the failure to act that was complained of by the insured party.
  • Any other charges the count deems proper

How To Go About Proofing A Texas Bad Faith Claim?

The claimant and his attorney must show that the facts about the insurance claim are sufficient proof that the Insurance company is acting in bad faith. It can become a very complicated situation to establish that the company acted in bad faith. Therefore, it is essential to consult with a personal injury attorney that has the necessary experience with these cases.

Jonny Millers