What Happens if the Insurance Company Won’t Pay Your Claim?
It’s important to secure the right legal support in any bad-faith litigation. Over the past thirty years, Franklin D. Azar Accident Lawyers has emerged as the largest plaintiff-centered personal injury law firm in Colorado — in no small part because of its commitment to injured people and its willingness to take on even the largest insurance companies when the cause is just. Contact our Colorado bad faith claim lawyers today for a free consultation and no-obligation evaluation of your case.
Your Auto Policy is a Contract
Your auto insurance policy is essentially a contract with your insurance company: You agree to pay for coverage, and the insurance company is obligated under state law to compensate you in a fair and timely manner when you submit a legitimate claim for damages resulting from an accident. But in far too many instances, insurance companies have been known to reject claims, often without a reasonable explanation or an adequate investigation of the case.
When an insurance company arbitrarily rejects a claim, or attempts to settle that claim for far less than what would be considered reasonable under the circumstances, the policy holder can file a bad faith lawsuit against the company. “Bad faith” means that the company failed to do what it promised to do under the terms of the policy.
Bad faith lawsuits are much more difficult to pursue than the typical personal-injury claim arising from an accident. In addition to proving the damages resulting from the accident, the plaintiff also has to establish the wrongful conduct of the insurance company — and that company will have enormous resources it can draw upon in defense of its actions (or inaction). If you are considering a bad faith lawsuit, you should consider enlisting the aid of experienced attorneys and a law firm that has a proven track record in successfully fighting insurance companies.
Elements of a Bad Faith Case
In Colorado, an insurance company’s duties to its policyholders are, in part, specified by statute, under the Unfair Claims Settlement Protection Act. Among other prohibited acts, insurers could be found engaging in unfair claims practices if they:
- Misrepresent relevant facts about a claimant’s policy or coverage.
- Fail to promptly acknowledge communications related to claims.
- Fail to adopt reasonable standards for prompt investigation and settlement of claims.
- Don’t attempt in good faith to reach a fair settlement of claims.
- Unreasonably delay payment of claims.
Definitions of what is a “reasonable” offer of a settlement or a “reasonable” amount of time to process a claim can vary from case to case. Important elements in in any bad-faith case involve being able to establish that the plaintiff suffered serious and substantial injuries, and that his or her situation was exacerbated by the insurance company’s conduct — for example, by prolonged delays in handling the case or outright refusals to pay. Insurance companies found to have engaged in bad-faith conduct can be liable not simply for the benefits limits specified in the policy but three times that amount, plus reasonable attorneys’ fees and costs.
How Our Colorado Bad Faith Claim Attorneys Can Help
Insurance companies often go to great lengths to defend their bottom line. That includes resisting paying out any more than they deem necessary on any claim, and sometimes denying or low-balling perfectly legitimate claims. If you are going to take on your insurance company in court for alleged bad faith, you should be prepared for a battle that will require time, patience, and expertise.
“The insurance companies defend these cases vigorously,” notes DezaRae LaCrue, an attorney at Franklin D. Azar Accident Lawyers who has successfully taken many bad-faith cases to court. “I tell my clients that, even if the law is on your side, it’s not a slam-dunk. It takes work. It takes experts. It takes resources.”
We all rely on insurance companies to protect us when something goes wrong, whether it’s a car accident or a house fire or a medical emergency. But what can you do if your auto insurance company rejects your claim without an explanation, fails to adequately investigate the claim, or attempts to settle the claim for far less than it is worth?
Fortunately, the law provides recourse for people when their insurance companies unreasonably deny a claim or engage in other wrongful conduct. It’s called a bad-faith lawsuit. Here are the most common questions we receive about the process.
What Is a Bad-Faith Lawsuit?
Think of your auto insurance policy as a contract with your insurance company. You agree to pay for coverage, and the insurance company is obligated under state law to compensate you in a fair and timely manner when you submit a legitimate claim for damages resulting from an accident. When an insurance company fails to act promptly on the claim, arbitrarily rejects that claim, or attempts to settle it for far less than what would be considered reasonable under the circumstances, the policy holder can file a bad-faith lawsuit against the company. “Bad faith” means that the company failed to do what it promised to do under the terms of the policy.
What Sort of Conduct by The Insurance Company Constitutes Bad Faith?
In Colorado, an insurance company’s duties to its policyholders are specified, in part, under the Unfair Claims Protection Act. Among other prohibited practices, insurers could be found to be engaging in unfair claims practices if they:
- Misrepresent relevant facts about a claimant’s policy or coverage.
- Fail to promptly acknowledge communications related to claims.
- Fail to adopt reasonable standards for prompt investigation and settlement of claims.
- Don’t attempt in good faith to reach a fair settlement.
- Unreasonably delay payment of claims.
Important elements in bad-faith cases include being able to establish that the plaintiff suffered serious and substantial injuries and that the situation was exacerbated by the insurance company’s conduct—for example, by prolonged delays in handling the case or outright refusal to pay.
Insurance companies that fail to honor their commitments can face various claims, from breach of contract and common-law bad faith to a statutory bad-faith claim under the Colorado Bad Faith Insurance Statute.
What Damages Are Involved in Bad-Faith Lawsuits?
Insurance companies found to have engaged in bad-faith conduct can be liable not simply for the benefits limits specified in the policy but three times that amount, plus reasonable attorneys’ fees and costs.
Do I Need a Lawyer to Pursue a Bad-Faith Lawsuit?
Bad-faith lawsuits are much more difficult to pursue than the typical personal injury claim arising from an accident. In addition to proving the damages resulting from the accident, the plaintiff also has to establish the wrongful conduct of the insurance company, which has enormous resources it can draw upon in defense of its actions (or inaction). Insurance companies will go to great lengths to defend their bottom line, and you will need legal representation that is fully committed to getting you the compensation you deserve.
The Colorado Bad Faith Claim Attorneys at Fdazar
Colorado Bad Faith Claim Lawyer, Franklin D. Azar
If you are considering a bad-faith lawsuit, you should enlist the aid of experienced Colorado personal injury attorneys and a law firm that has a proven track record in successfully fighting insurance companies. At Franklin D. Azar Accident Lawyers, our attorneys have helped thousands of injured people obtain complete and timely compensation for their losses. We have recovered millions of dollars in bad faith cases, including recent settlements of $875,000 and $921,000 against major insurance companies. Our proven track record and expertise have allowed us to grow into the largest personal injury law firm in Colorado, and we are ranked as one of the top law firms in the nation in litigation against insurance companies. If your insurance company isn’t dealing with you fairly, please call the bad-faith lawyers at FDAzar day or night at 800-716-9032 or contact us here for a free consultation and no-obligation evaluation of your case.
Franklin D. Azar Accident Lawyers – Colorado Office
14426 E Evans Ave
Aurora, CO 80014
P: (303) 757-3300
