Long-Term Care Bad Faith Claims
Long-term care bad faith claims are legal complaints that many individuals and government agencies have taken to U.S. courts. Long-term care insurance (LTCI) is a specific type of insurance — offered by employers and insurance companies — that covers part or all of the costs of an individual's care in a nursing home or at home. The purpose of LTCI is to pay for costs that are not covered by health insurance or Medicare.
Many Varieties of Long-Term Care Bad Faith Claims
There are many versions of LTCI policies, each with its own kind of coverage. The dizzying array of coverage options is reflected in the details of the various long-term care bad faith claims. "Bad faith" refers to illegal conduct by an insurance company, such as when the insurer:
- has a claims process that is unreasonably difficult and confusing
- doesn't investigate a policyholder's claim in a timely manner
- unreasonably denies benefits or coverage
- delays the payment of the benefits without good reason
- interprets the language of the insurance policy in an unreasonable manner
- passes a claimant's case around from one claims adjuster to another to stall the claim's resolution
- refuses to settle a claim
- pays only part of the benefits that should be paid
A Legal Remedy, Including Compensation
Long-term care insurance providers are required by law to handle claims in good faith. When the provider acts in bad faith, a policyholder has the right to file a bad faith insurance lawsuit or take other legal action to get a remedy, including financial compensation for damages such as:
- the costs of care that an individual had to pay because of the denied claim, under-payment, or delayed payment
- money that the insurance company owes the policyholder (or survivors)
- reasonable attorneys' fees
- in extreme cases, punitive damages for emotional distress
Stalling Until the Policyholder's Death
One of the most objectionable examples of long-term care bad faith is when an insurer stalls the payment of benefits for so long that the insured individual's death occurs before the benefits are paid out. As one plaintiffs' attorney described it, long-term care claims are difficult to pursue when you are old, sick, or in poor health, and the survivors of a policyholder may not even realize that they too have a valid claim against the insurer.
You May Have a Long-Term Care Bad Faith Claim
If you or your loved one feel that an insurer has engaged in bad faith — whether for long-term care insurance or another type of insurance — you may be eligible to recover your losses. To speak with a qualified attorney for insurance bad faith, contact us today.
Be assured your matters will be in experienced & caring hands.
