4 Situations When You Will Need To Hire An Insurance Lawyer

Posted on Feb 10 2017 - 7:04pm by Editorial Staff

Just the thought of dealing with insurance companies probably makes you cringe a bit and start to roll your eyes. No one wants to deal with all of that paperwork and complicated technical language that comes with insurance.

However, there are times when that is necessary. And one of those times is when your insurance company does some illegal activity that requires you to get in touch with an insurance lawyer. There are many different cases in which this kind of thing will be necessary and we’re going to go through four of the top situations in the below article.

If you’re going to be filing a suit against your insurance company, be sure that you hire one of the highest quality insurance lawyers out there, so you can be readily prepared for the legal battle in front of you. These things can get quite complicated, so it’s best to have an expert on your side.

Denied Insurance Claims

One of the first illegal activities that an insurance company can partake in is the denial of your insurance claim for no good reason. In the United States, insurance companies must, by law, act out of “good faith” and process any insurance claims that are in good standing. If there’s nothing wrong with your application, then an insurance company is obligated to process the claim.

If you have been denied your insurance claim without proper reasoning from your insurance company, this is the first reason why you need to get in touch with an insurance lawyer to get this all settled.

Bad Faith Insurance

The next situation is one that happens to too many people around the country. Bad faith insurance situations happen when the insurance company commits fraud or denies paying your claim to protect their own profit. This is something that’s completely illegal and will require you to file a lawsuit against your insurance company. Below are some of the lawsuits that have been filed against these companies, for your reference:

  • Imposing a 24-month limitation on benefits for mental and nervous conditions
  • Knowingly applying the wrong legal definition of disability when denying claims
  • Purposely targeting high-cost claims for denials
  • Misuse of claimants’ medical records
  • Offering less than the claimant is entitled to
  • Purposely targeting certain types of claims for denials

Delayed Insurance Claims

Along the same lines as the first point, if your insurance company is knowingly delaying your insurance claims for no good reason, that’s ground for a lawsuit. Most states have time limits in which insurance companies must respond to and start processing your claim. If your insurance company has not met that time limit and is taking an insane amount of time in getting back to you, be sure to contact an insurance lawyer right away.

This also applies to when insurance companies don’t properly update you on the status of your claim. In cases like these, it’s likely that the insurance company is not keeping you updated because they don’t aim to pay your claim in the end.

Cutting Off Your Policy Unexpectedly

Some insurance companies will cut off the policy of a claimant unexpectedly and without a good reason. This is completely illegal and is proper ground for a lawsuit from your side. If you’re claiming insurance for a personal injury, there is no reason that your insurance company should drop your policy at such a time in your life.

If you need to file a suit against your insurance company, it’s best that you’re properly educated and aware of what constitutes a suit before you get into this process. It’s only going to help you if you’re prepared before you step into that courtroom.

Photo by erikpa1, CC0 1.0

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.