Common Bad Faith Tactics Used by Insurance Companies

Some Nevada insurance companies engage in bad faith insurance schemes to avoid paying claims following injury accidents. Bad faith insurance tactics are illegal, and victims of them may have the legal grounds to file bad faith insurance lawsuits in addition to their personal injury claims. By recognizing the common bad faith insurance tactics that insurance companies use, victims may work with a personal injury lawyer to put a stop to them so that they can recover compensation for their losses.

Making Excessive Paperwork Demands

While insurers must investigate claims, which will require paperwork requests, some insurers demand excessive amounts of paperwork. They do this to draw out the process and exhaust claimants in the hopes that they will simply give up.

Denying Claims Without Investigating

Some unscrupulous insurance companies issue quick denials of claims without fully investigating them. While there may be grounds to deny some claims, insurance companies must conduct full investigations of all claims before they make the decision to issue denials. Claimants have the right to request complete copies of their files. They should do so when they believe that the denials were issued without just cause because their files will contain all of the evidence the insurer used to deny the claim.

Lowball Offers

Some companies extend offers that are unreasonably low. This tactic is used to try to convince the victims that their claims are worth less than they are. Insurance companies also do this because if the claim is negotiated up, the companies hope that they will still settle for less than what they are worth. Victims should not accept settlement offers from insurance companies without first determining what their claims are actually worth. A personal injury lawyer understands the factors that are used to value claims so that the attorney can evaluate offers.

Misrepresenting or Canceling Policies

Because insurance companies know that many people do not read the fine print of their insurance policies, some will try to misrepresent what the policy covers or says. Insurance policies may contain difficult-to-understand legalese, and claimants may want to get help with understanding what is covered and what is not. Another tactic that insurance companies sometimes try is canceling policies because the insured victims file claims. It is illegal for insurance companies to do this.

A personal injury lawyer may understand the bad faith insurance tactics that are commonly used. The attorney may take steps to end the tactics and recover compensation.

 

Memberships and Awards