Your insurance company has an obligation to provide you with benefits after a significant incident, as specified by the terms of your agreement. After spending years making your premium payments, it is their turn to take care of your expenses following an accidental injury or illness. Unfortunately, these companies do not always take this duty seriously.
If your carrier rejects your claim without a good reason, a dedicated personal injury attorney could investigate to see if they are acting in bad faith. If it turns out you have been treated unfairly, you may be entitled to additional compensation. Let a Philadelphia insurance and bad faith claims lawyer from Marrone Law Firm evaluate your options.
Pennsylvania law provides a two-pronged test for determining if an insurance company has acted in bad faith by denying a claim. First, a plaintiff must be able to show that the insurer issued a denial without a reasonable basis for doing so. There must be some factors that the company can point to, including a lapse in coverage.
Second, there must be proof that the insurer knew or recklessly disregarded evidence that there was no reasonable basis for a denial. While there is no need to show that the company acted with ill-will, doing so can satisfy the second element of this test.
For these cases to be successful, there must be clear and convincing evidence. This is a high burden, given that these insurance companies frequently have some excuse for refusing to pay benefits. An attorney in Philadelphia could make the strongest claim possible that the insurance company acted in bad faith in denying benefits.
Not every act of bad faith looks the same. There are many different acts beyond simply rejecting a claim without a good reason. Some of the most common examples include the following:
Any of these actions might serve as the basis for a viable claim for compensation. While it can be difficult to prove the insurer acted inappropriately, the support of an attorney can go a long way towards making a winning case.
When a Philadelphia attorney succeeds with a bad faith insurance claim, they can recover different types of damages on behalf of the consumer. No two cases are exactly alike, so the amount recovered can vary.
First, a successful outcome will result in the fair value of the claim. While having this amount finally paid is likely a relief, it can take months or even years to resolve these cases. For that reason, the court will generally award interest in the amount of the prime rate, plus 3% starting from the date the original claim was made.
The court also has the power to award punitive damages. As the name suggests, these payments are intended to deter unfair practices by insurance companies in the future. Finally, the defendant could be saddled with the insured’s court costs and legal fees.
Dealing with a vehicle accident or serious injury is frustrating enough without an insurer getting in the way of your recovery. When your claim is unfairly rejected, you deserve legal counsel that will not only help you get the benefits you need but also hold the company accountable for its actions. Call a Philadelphia insurance and bad faith claims lawyer from Marrone Law Firm today to learn more about how we could help.