Texas attorney Anastacio “Trae” Mindiola has been practicing law for more than a decade. A graduate of South Texas College of Law, Anastacio Mindiola primarily handles civil cases.
As with any business, insurance companies focus largely on profit. However, insurance companies cannot intentionally pursue profit at the expense of their policyholders. Doing so constitutes "bad faith," which is an intent to deceive. Below are several examples of bad faith behavior by insurance companies:
- Poor communication. Insurers are responsible for communicating with policyholders in a straightforward and timely manner when policyholders file a claim. When policyholders don’t hear from their insurance company for several weeks after they file a claim, the company may be purposely ignoring its policyholders.
- Unjustly denying a claim. Not every claim is approved by an insurance company. However, a claim denied for no clear reason suggests bad faith. When a claim is denied, insurance companies must explain the reason behind the denial. This explanation must be reasonable and must be based on the company’s investigation.
- Delaying payment. Some insurance companies approve a claim but use delay tactics to avoid or reduce the amount of the settlement. To end delays, insurance companies may pressure policyholders to accept lower settlement payments than they deserve. This is bad faith.
As with any business, insurance companies focus largely on profit. However, insurance companies cannot intentionally pursue profit at the expense of their policyholders. Doing so constitutes "bad faith," which is an intent to deceive. Below are several examples of bad faith behavior by insurance companies:
- Poor communication. Insurers are responsible for communicating with policyholders in a straightforward and timely manner when policyholders file a claim. When policyholders don’t hear from their insurance company for several weeks after they file a claim, the company may be purposely ignoring its policyholders.
- Unjustly denying a claim. Not every claim is approved by an insurance company. However, a claim denied for no clear reason suggests bad faith. When a claim is denied, insurance companies must explain the reason behind the denial. This explanation must be reasonable and must be based on the company’s investigation.
- Delaying payment. Some insurance companies approve a claim but use delay tactics to avoid or reduce the amount of the settlement. To end delays, insurance companies may pressure policyholders to accept lower settlement payments than they deserve. This is bad faith.
