In automobile accident cases, it can be difficult to determine who was at fault. When an accident happens and the other person’s insurance company immediately settles, sometimes the settlement from the insurance company is not enough to cover the medical expenses that result from a serious injury. Underinsured Motorist coverage is a way to help make up the difference between your settlement from the other person’s insurance company and the total cost of medical bills. Your insurance company has a duty to act in good faith to pay benefits to you according to the policy you have with that company. There are cases, however, where the insurance company tries to avoid paying the benefits you are entitled to.
In Arkansas, when an insurer refuses to pay a claim, you may be legally entitled to sue the insurance company for acting in bad faith. When a company simply denies liability, or if they offer to compromise a claim or if there is an error in judgment that is grounded in good faith, the tort of bad faith does not apply. If however, the insurance company’s actions display affirmative misconduct in bad faith, and they have acted in a malicious or oppressive way in an attempt to avoid liability or a payout under your policy, you may be entitled to sue your insurance company for the amount they owe you.
Signs that may indicate an insurance company is acting in bad faith include:
1. The insurer delays, discounts or denies payment without a reasonable basis for its delay, discounting or denial.
2. The insurer fails to acknowledge and reply promptly upon notification of a covered claim.
3. The insurer fails to do a proper, prompt, and thorough investigation of the possible liability and damages.
4. The insurer fails to affirm or deny coverage within a reasonable time after claims and proof of loss has been submitted.
5. The insurer fails to settle the claim in a reasonable amount of time where liability and coverage is clear under a portion of your insurance policy.
6. The insurer fails to provide a reason and explanation for denial of coverage.
7. The insurer refuses to settle a claim directly when a settlement is required and instead requires you to pursue a claim against another party before offering settlement.
8. Insurer advises you not to hire a lawyer when a claims issue arises.
9. The insurer refuses to settle a third party claim against you within the limits of your policy and exposes you to additional liability.
If you or someone you love are experiencing any problems recovering compensation under an insurance policy, or if you have been seriously injured in an automobile accident, contact our office today at 501.296.9820. Free consultation with no obligation.