What is an extracontractual claim?

An extracontractual claim in North Carolina is a legal action taken when insurance companies and their representatives fail to properly handle an insurance claim. This type of claim is sometimes referred to as bad faith insurance. Extracontractual claims arise when an insurance company or its representatives ignore the terms of the policy or deliberately mishandle a claim in order to avoid paying out on the policy. This can include things like providing inadequate coverage, delaying or denying payment of claims, misrepresenting facts, using unfair contract language, or making improper adjustments to premiums. If an individual believes that an insurance company or its representatives have acted in bad faith, they can file an extracontractual claim in court. During the case, the court will review the insurance policy and evidence of bad faith on the part of the insurance company or its representatives to determine if their actions were indeed improper. If so, the court will usually grant the plaintiff a monetary award to cover their losses or damages.

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What is an extracontractual claim?

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