Examples of Bad Faith Insurance Tactics

Insurance form with red "rejected" stamp to indicate a bad faith insurance claim

Insurance companies are meant to provide peace of mind when the unthinkable happens. You pay your monthly premiums in good faith, assuming that your provider will fully assist you should you need to file a claim. Unfortunately, there are instances when insurance carriers may go out of their way to deny or delay a claim. These practices are known as “bad faith” tactics, and they are prosecutable by law. Read our examples of some of the more common bad faith insurance tactics to know what to watch out for. Common Bad Faith Insurance Examples No Reason Given for Denial Your insurance carrier must...

13 July

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Unfair Claims Practices in Colorado

Posted by Heather Kleinman

in Claims, Insurance Claim

The Unfair Claims Practices Act is an important part of Colorado legislation that protects policyholders against deceptive behavior by their insurance company. The act outlines specific tactics that are illegal for insurers to utilize when processing a claim. An insurance denial that occurred while any such action was taking place can indicate a bad faith claim, which is grounds for legal action. What Insurance Processing Tactics Are Illegal? Unfair insurance practices include any deliberate attempt to delay or deny a claim by means of deception, misrepresentation, or poor communication. The following scenarios are red flags and should be reported. Frequent “Clerical Errors” Everyone makes...

09 February

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What Should You Do If Your Fire Claim Was Denied?

Posted by Lindsay

in Claims, Fire Damage, Insurance Claim

insurance form with red stamped letters saying "rejected"

The insurance claims process can be complicated and frustrating. Fire claims are especially daunting, since you are dealing with a significant emotional toll while trying to objectively document physical losses. When dealing with such a situation, the last thing you need is to have your claim denied. While there are certain instances when a fire claim can be legitimately denied, there are plenty of times when a claim was mishandled or unfairly rejected. If you feel your claim denial was unjustified, there are several steps you can take. Read the Denial Letter The first thing you will want to do is review the formal...

24 January

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Filing a Fire Damage Insurance Claim

Posted by Lindsay

in Fire Damage, Insurance, Insurance Claim

If you have been the victim of a home fire, such as the devastation that occurred recently after the Marshall Fire in Boulder county, filing an insurance claim may be the last thing on your mind. However, once you and your loved ones have reached a safe location, it is imperative that you contact your insurance company as soon as possible. The sooner you do this, the sooner you can receive much-needed settlement money and begin the recovery process. Contacting Your Insurance Company For starters, you will want to contact your homeowners insurance carrier. This is the particular type of insurance under...