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Dawson and Rosenthal

Do I Have a Bad Faith Disability Claim Against My Disability Insurance Company?

An insurance company may use bad faith tactics to discourage or deny individuals from collecting on a disability insurance policy. When customers need insurance most, it is expected that disability insurance policy providers in Arizona and California will act in good faith. However, an insured party may need to file a bad faith disability claim to recover their rightful compensation.

Determining whether your claim is denied or reduced without just cause requires familiarity with what the insurance policy covers. Understanding complex insurance laws is essential when filing a claim against a disability insurance company. Below are signs that you may be dealing with a bad-faith disability claim in San Diego.

Bad Faith Disability Insurance Practices

Insurance policies are legal contracts between the covered party and the insurance company providing coverage. Good faith practices are used in these contracts, providing that coverage will be rendered in exchange for premium payments. It may be possible to file a bad-faith disability claim when the following elements apply:

  • The insurance company fails to investigate a claim promptly or gives an unfair evaluation.
  • Denial standards are hidden or improperly used when refusing a claim.
  • A disability insurance company requires excessive information.
  • A policy payment is purposefully slowed or delayed.
  • Harassing or threatening language discourages a claimant from filing or collecting a policy.
  • A policyholder is misinformed of their rights under coverage.
  • A disability insurance company fails to provide a reason to deny a claim.

The tactics insurance companies use in Arizona denied disability claims and San Diego denied disability claims could leave injured individuals financially devastated as they try to recover physically. California and Arizona protect against these practices that insurance companies may potentially use to reduce the compensation they must pay. While a claim denial may be legitimate, it is critical to ensure the disability coverage you have paid for.

Steps to Take to File a Bad Faith Disability Claim

Legally fighting against bad faith insurance practices may feel impossible after injury, especially when you need to focus on recovery. Often, it is beneficial to receive guidance from the beginning when filing a disability insurance claim to avoid the hazards that may lead to a claim’s denial.

Become Familiar With Your Disability Insurance Coverage

Familiarizing yourself with a policy’s coverage before it is needed ensures you have the correct coverage. It also prevents surprise claim denials. Read a policy throughout to understand its limitations and what to expect in coverage.

Keep Accurate Records of a Disability Insurance Claim

Documentation starts a paper trail of your interaction with the disability insurance company and demonstrates how a claim is processed. Medical records are vital to your documentation. Additionally, keeping the name of the person you spoke with and the date and time allows insurance representatives to be contacted more efficiently. Follow these tips for keeping accurate insurance claim records.

File a Bad Faith Disability Claim

Filing a complaint with the Arizona Department of Insurance and Financial Institutions or the California Department of Insurance may be necessary. You may also be eligible to receive compensation in a bad faith disability claim for any damages you suffer.

Experienced legal representation is necessary to take the appropriate steps to file a claim. Get answers to bad-faith insurance questions and determine if you have a bad-faith disability claim.