At the Joseph Farzam Law Firm we are dedicated in protecting the right of Insurance Policy Holders who have been wrongfully denied coverage by their insurance adjusters. Refusal to pay put a rightful insurance claim can lead to disastrous results for policy holders who are trying to get their lives back together after a traffic accident, home fire or flood or commercial businesses property damage.
Our denial of insurance coverage attorneys possess the expertise and experience to handle sophisticated and challenging insurance coverage disputes including, Auto Insurance Claims, Home Insurance, Fire, Flood, Earthquake, Development Construction, Business and Commercial Insurance and Life Insurance.
What is Insurance Bad Faith
In any contractual relationship there is an implied covenant of Good Faith and Fair Leading in discharging contractual obligations. Both parties have contractual obligation to deal in good faith with each other.
Years ago when a dispute over coverage arose between insurance companies and the insured, the only legal course of action would be filing a claim under breach of contract. However, courts and legislators began to realize there needed to be a secondary avenue for compensation so the insurance companies would refrain from engaging in fraudulent behavior.
California Insurance Bad Faith Laws – Insurance Code Section 790-790.5
California Statute 790.03 provides a basis for defining unfair methods and deceptive acts of insurance companies which would warrant a valid bad faith claim. Below are some acts constituting bad faith practices by insurance companies. For a full reading of California Bad Faith Insurance Dispute Click here.
- Making or dissemination misleading, untrue and false advertisement of insurance policies
- Unfair discrimination practices between individuals of the same class
- Misrepresentation of facts and insurance policy coverage pertaining to the issuance of claims
- Failing to deny or affirm clams in a reasonable time period
- Attempting to settle a claim that is lower than the amount a reasonable person would believe he is entitled to
- Refusing to settle a claim in a prompt timely manner
- Delaying investigation of a claim
- Misleading or wrongful advising of claims
- Delaying payment or refusing to renew insurance policies after payment
- Advising policy holders not to retain an attorney regarding an insurance dispute matter
- Misleading clients as to specific laws regarding insurance bad faith including failing to notify policy holder of the statute of limitation
Insurance Dispute Lawsuit – What is needed to prove an Insurance Bad Faith Claim in California Courts
In the State of California there are specific elements that must be shown to prove an insurance company acted in bad faith.
(1) The specific claim in question is covered by the insurance agreement
(2) The Insurance company has refused to pay policy holders the contracted damages or has unreasonably delayed in paying claims
(3) There is no reasonable reason why the Insurer failed to pay or delayed payment of the policy
(4) The denial of claim are intentional (it was the intent of the insurance company to deny payment)
(4) The insured party or third party suffered damages in excess of the coverage payment resulting form the failure of insurer to pay.
Showing of Damages in an Insurance Bad Faith Claim: Evaluating damages in an insurance claim dispute can be difficult to assess. Calculation of damages by an insurance dispute attorney should include the defined benefits stated in the policy plus interest payments, consequential damages in excess of damages provided in the policy and the awarding of punitive damages.
What are Punitive Damages – Can I Claim Punitive Damages in an Insurance Dispute / Insurance Bad Faith?
Punitive damages are awarded by court as a form of punishment against insurance companies with the aim of preventing future action constituting bad faith. In order to receive a punitive damage award, a plaintiff will have to show to the court that the actions or inaction of the insurance company were intentional, wanton or reckless.
Below is a list of some insurer conduct that a plaintiff will have to show the court.
- Actual Malice
- Willful or Wanton
- Gross Negligence
- Intentional acts of misconduct
- Fraud with intent to deceive
- Extreme conduct
- Reckless disregard for the health and safety of others
Our Insurance Bad Faith Law Firm has the means to take one the largest insurance companies and their defense law firm so that you can get the compensation you deserve including Punitive Damages.
Further Channels of Recovery: Other damages in an insurance bad faith claim may include, Emotional Distress for refusal to pay out an insurance claim, Mental Distress including Post Traumatic Stress, Loss of Savings to cover present needs, Economic Effects of denial of payment and compensation for time spent perusing the claim.
Wining your Insurance Bad Faith Claim – Trusted Insurance Dispute Attorney Los Angeles California
Insurance Bad Faith Lawsuits can be difficult to litigate requiring expert testimony, insurance practitioners and tedious expert legal representation. The Joseph Farzam Law Firm has years of experience handling uniquely challenging insurance litigation involving some of the largest Insurance companies in California. We will take on all insurance companies including.
- State Farm
- California State Auto
- Liberty Mutual
We Can Help You Get the Compensation You are Owed: Our Lawyers have handled and litigated thousands of cases and recovered tens of millions of dollars in settlements and verdicts against the largest insurance carriers in the Nation. Our dedicated legal team deeply cares for every client.
Your cause is our cause; to see to it that justice is served and full restitution recovered. We have tremendous passion for the practice of law and will zealously and vigorously litigated your case until justice is served and victory achieved.
For a Free Consultation with our Insurance Bad Faith Punitive Damage Attorneys contact us toll Free. (888)999-9394