Insurance firms must act fairly and in good faith with their policyholders. However, some insurers may participate in acts that are deemed bad faith. Recognizing these signals early on will help you take necessary action and safeguard your rights.
Spotting unfair practices
Knowing what to look for can help you identify if your insurance company is acting in bad faith. Here are common signs:
- Unreasonable delays: If your insurer takes an unusually long to process your claim or respond to your inquiries, they might be acting in bad faith.
- Inadequate investigation: A proper investigation is crucial. If the insurer fails to investigate your claim thoroughly, they may act in bad faith.
- Lowball offers: Offering significantly less money than what your claim is worth can be a tactic to discourage you from pursuing your claim.
- Misrepresentation of policy terms: If the insurer misrepresents or distorts the terms of your policy, this is a clear sign of bad faith.
- Unjust denials: If your insurer denies your claim without a valid reason or explanation, it could be a red flag.
Additionally, consistent failure to return calls or update your claim may indicate bad faith.
Taking legal action against insurance bad faith
If you believe your insurance company is acting in bad faith, start collecting crucial documents. This includes all communications like emails, letters and phone calls. It is also vital to review your policy. Make sure you understand the terms and conditions of your insurance policy.
You can file a complaint with the North Carolina Department of Insurance. They can investigate and take any necessary action. You may also seek a legal professional to guide you through the process and protect yourself from bad faith practices.