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Dawson and Rosenthal
Dawson and Rosenthal

San Diego Institutional Bad Faith Attorney

Insurance policies that a group purchases in large quantities can save individuals money in premiums. The group has the same benefits as if it were a more traditional insurance purchase, and the company provides the plan at a discounted rate. These group insurance plans are generally available through an employer or a group such as AARP or AAA. Unfortunately, some insurance companies act in bad faith against the entire group instead of just on one claim. This can be grounds for a bad faith claim.

Typically, claimants can file two types of bad faith insurance claims. Individual claims put the story of one person against an insurance company. An institutional claim puts the stories of an entire group of people up against an insurance company. An institutional claim can be very powerful but needs the right type of evidence to support the claims and a San Diego institutional bad faith attorney at Dawson & Rosenthal, P.C. can help.

What Is Institutional Bad Faith?

Institutional bad faith is when an insurance company breaks the policy of an entire group of people. That group could be an entire company, a school, or other large group of people who purchased insurance together. In cases of individual insurance, the party with more power is often the insurance company. In the case of institutional bad faith, both parties have a case to layout, and the evidence can be overwhelming.

Types of Institutional Bad Faith

Institutional bad faith can be the result of any number of actions an insurance company makes to prevent paying a policy. They can include:

  • Financial incentive programs
  • Performance expectations on the group
  • Company policies that include an increase of claim denials
  • Review committees designed to deny claims
  • Denying claims based on weaker evidence
  • Dismissing symptoms that do not show up on a medical report such as nausea
  • Failing to thoroughly investigate claims
  • Delayed payments
  • Denied claims with no reason
  • Improper documentation

Proving Institutional Bad Faith

When dealing with a large group of people, the evidence comes from multiple sources and can be difficult to track. Hiring a San Diego institutional bad faith attorney is the best course for fighting these types of bad faith issues – insurance companies will have their own lawyers to fight you. Sometimes, the group of people filing the bad faith case will choose to use the same lawyer or group of lawyers. Discuss your case with an attorney who has experience with these claims before deciding to join a group. A fresh set of eyes on the case can sometimes have a bigger impact on getting results. Be sure that you are comfortable with the lawyer handling the case. He or she is going to need full cooperation and access to a lot of personal information.

What to Do If You Suspect Institutional Bad Faith?

If you suspect institutional bad faith, speak directly to a San Diego bad faith insurance lawyer experienced in these types of claims as soon as possible. According to the Insurance Committee for Arson Control (ICAC), education on bad faith mostly ends with whether an insurer has paid the claim and not on the insurance company’s manner in dealing with the situation. Both pieces of the puzzle can influence an institutional bad faith claim. Choosing a firm with only a few cases on their plate means that you will get the individualized attention you deserve. Don’t wait for everyone else to act first.

Speak with an Institutional Bad Faith Lawyer in San Diego

In California, state and federal laws hold insurance companies to the policies they sell. If you believe you or someone you know is a victim of institutional bad faith, talk to a firm that has experience and dedicates time to your case. Contact us today for a no-fee consultation.