What are insurance bad faith claims?

Insurance bad faith claims are legal actions that are taken when an insurance company acts unreasonably or unfairly when handling a claim. In Florida, this type of claim can be made when an insurance company refuses to properly review or process a claim, fails to investigate a claim, or fails to pay a claim in a timely manner. In addition to these behaviors, bad faith may also occur when an insurance company delays in responding or fails to respond to a claim at all. Further, the insurance company may fail to provide a reasonable explanation for the delay or even for the denial of the claim. If an insurance bad faith claim is made, the courts will evaluate the insurance company’s conduct in order to determine if bad faith was present. If bad faith is found, then the court may award damages to the policyholder as a result. These damages can include the reimbursement of lost wages and medical expenses, as well as punitive damages for emotional distress. In Florida, any insurance claim that has not been processed in a timely manner or denied without a reasonable explanation can be considered bad faith and result in legal action. Furthermore, if an insurance company is found guilty of bad faith, the policyholder can be entitled to compensation.

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