No one wants to battle an insurance company to receive their just compensation. However, there are times when the insurance company acts in bad faith against the policyholders they are supposed to help.
At The Callahan Law Firm, we understand how devastating it is when an insurance company unfairly denies your claim. We have considerable experience in resolving disputes for policyholders in Pasadena, Texas.
Our firm has represented policyholders against large insurance companies for various insurance claims, from life and homeowners’ insurance to business insurance claims from natural disasters.
If you have issues seeking compensation for your claim, contact a bad faith insurance attorney from The Callahan Law Firm today.
Understanding Bad Faith Insurance Claims
When you start an insurance policy, you enter into a contract with the insurance company. Under this contract, there is an expectation that you and the insurance company will act in good faith with one another.
What are some ways that an insurance company should act in good faith with policyholders?
- Investigating a claim properly.
- Honoring the terms and conditions of the policy.
- Resolving claims as quickly as possible.
- Informing the policyholder of policy terms that can affect their claim.
- Providing all applicable provisions to a policy before convincing the policyholder to purchase coverage.
These are not recommendations that insurance companies can choose to follow; they are legal requirements. The Texas Insurance Code defines what qualifies as bad faith in Texas. Texas Insurance Code 542.003 prohibits insurance companies from engaging in unfair claim settlement practices.
When they violate this legal responsibility, they are potentially operating in bad faith.
Some examples of bad faith insurance include:
- Refusing to defend a policyholder.
- Misrepresenting policy terms.
- Failing to conduct a thorough investigation of a claim.
- Causing unreasonable delays for a claim.
- Failing to communicate critical information on insurance coverage.
Treating your claim unfairly and inappropriately can cause you to experience further damage. If this happens, you may be eligible to file a bad faith insurance claim.
A bad faith insurance claim is a claim that policyholders can make to hold insurance companies liable for their deceptive practices. It takes more than just a difficult experience with an insurance company to file this type of claim. There has to be evidence of an insurance company intentionally acting unreasonably while handling a policyholder’s claim.
Types of Bad Faith Insurance Claims in Texas
Bad faith insurance examples are categorized under two types: common law and statutory.
Common Law Bad Faith
Common law involves legal precedents that influence the outcome of similar cases over time. Even though this type of law is not written, it still establishes a precedent of what is legally acceptable and what isn’t.
An insurance company failing to conduct a proper investigation into a policyholder’s claim would be an example of a common law bad faith insurance claim. While there are no statutes explicitly defining this as an act of bad faith, it has been established as an act of bad faith through prior court decisions.
Statutory Bad Faith
Statutory law is law that has been established through Texas legislation. The Texas Insurance Code has established bad faith insurance examples through Section 542.
These examples include:
- Intentionally misrepresenting facts and policy provisions to a policyholder.
- Failing to execute reasonable standards for a prompt investigation into a claim.
- Failing to pursue a fair settlement of a claim when liability has been established
- Influencing a policyholder to pursue a lawsuit through deceptive practices such as offering less compensation than the amount ultimately recovered in the lawsuit.
- Failing to maintain a record of complaints made against the insurance company during three years or since the date of the company’s last examination.
Unlike common law, these are clearly defined examples that policyholders can refer to. When insurance adjusters begin to exhibit signs of bad faith, policyholders can document the deceptive practices to help strengthen their claim.
Even while handling a bad insurance claim, insurance adjusters may still engage in inappropriate practices. These actions can range from withholding pertinent information from a policyholder to outright threatening the policyholder from taking legal action.
How The Callahan Law Firm Can Help
Holding an insurance company liable for unfair claims practices can seem overwhelming. Having an insurance bad faith lawyer in Pasadena on your side can make all the difference.
Here are some ways that a bad faith insurance attorney can benefit your claim:
Reviewing Your Insurance Dispute
Our lawyers have extensive experience with thoroughly investigating insurance disputes. Whether it’s carefully reviewing the insurance policy or any written communication between our client and the insurance policy, we can determine whether there was any negligence on the part of the insurance company.
Managing Negotiations With Insurance Companies
At some point in your claim, the insurance company may request to settle with you. That does not mean, however, that they will offer a settlement that is fair and just. They can still attempt to lowball you.
Our bad faith insurance attorneys can handle all negotiations with the insurance company. We can make sure that you receive the compensation that you deserve.
Pursuing All Legal Outcomes
Nothing is guaranteed with a bad faith insurance claim. The settlement process may take longer than expected, or the claim may have to be resolved in court.
No matter what direction the claim may take, an experienced bad faith insurance lawyer can help you reach the best possible outcome. They can represent you in court if the claim progresses to that level.
Customized and Personalized Legal Counsel
Our legal team can provide personalized legal services to you. Many law firms have a one-size-fits-all approach to their clients. They juggle hundreds or thousands of cases and try to resolve them at the same time.
At The Callahan Law Firm, we don’t treat our clients as just another case. We dedicate all of our time and resources to getting full justice. The fewer cases we take, the better we can serve them.
When To Contact A Bad Faith Insurance Lawyer in Pasadena, TX
If you start to notice signs of bad faith practices while an insurance company is filing your claim, it would be best to contact a bad faith insurance lawyer in Pasadena.
Some of these signs could be:
- Dragging out the time it would take to investigate your claim.
- Failing to make honest statements about your policy.
- Failing to provide a valid reason for denying your claim.
- Denying your claim without conducting a fair investigation.
Your insurance company is obligated to process your claim fairly and if there is any indication that they are not, you may want to speak with a bad faith insurance attorney.
Working with a bad faith insurance lawyer in Pasadena can provide clarity to your claim. The process of interpreting bad faith state laws and negotiating with insurance adjusters can be confusing.
An experienced bad faith insurance attorney can provide guidance and insight. They can suggest effective legal strategies that can help you become whole again from your claim.
Talk To A Pasadena Bad Faith Insurance Lawyer Today
You do not have to wait for a denial of your claim to speak with a Pasadena bad faith insurance lawyer. If you are having a dispute with your insurance company, schedule a complimentary consultation with a Pasadena bad faith insurance attorney at The Callahan Law Firm.
We have over 25 years of experience in fighting for individuals and families against large insurance companies. We can explain how our firm can provide the best legal solutions for your bad faith insurance claim.
FAQ:
Does Texas have bad faith law?
Texas has both common law and statutory laws against bad faith insurance. All Texas statutes operate under a common law covenant of good faith. This covenant, while not written in law, implicitly states that insurance companies are required to act in good faith with each policyholder.
In addition to the good faith covenant, the Texas Insurance Code is a list of statutes that prohibit deceptive practices from insurance companies.
Can you sue an insurance company in Pasadena, Texas?
You may be able to sue an insurance company if that company has treated you unfairly throughout the claim process. All insurance companies can be held liable under Texas law for operating in bad faith.
To act in bad faith is to intentionally treat a policyholder unfairly and unethically. Operating in bad faith can be interpreted as the equivalent of breaching a contract. If the insurance company does not keep up its end of the contract, you may be able to sue for whatever damages result from that negligence.
How long do I have to file an insurance bad faith claim in Pasadena?
Texas law allows policyholders two years to file a bad faith insurance claim in Pasadena. This period is known as the statute of limitations.
The statute of limitations on your bad faith insurance claim is based on either the date that the deceptive action happened or the date that you discovered the act(s) of bad faith.
What is evidence of bad faith?
A simple mistake from an insurance company is not enough evidence of bad faith. There has to be evidence that the insurance company knowingly engaged in deceptive actions that are unfair and unreasonable.
Some examples of evidence include:
- Photos
- Emails or written correspondence between the insurance company
- Witness statements
- Unreasonable delays in the claim process
- Lack of benefits
