Bad
Faith Denial for Disability
When an insurance company unreasonably denies disability benefits to a policyholder, this action may be considered a bad faith denial for disability. Bad faith denial for disability may allow the aggrieved insured to seek legal remedy. An individual who has been wrongly denied disability benefits or has received too small an amount of benefits may seek compensation from the insurance company who acted in bad faith. Bad faith is when an insurer acts in such a way as to mislead an insured or any failure to uphold contractual or fiduciary obligations.
Disability insurance is income paid to a policy holder when they are unable to work due to illness or injury. Disability insurance can be provided by a number of sources including: an employer, private insurer, Social Security, State Disability Insurance, and some federally-sponsored programs. Any disability that occurs as a result of employment may be covered by worker's compensation. Typically, when an insured becomes disabled, insurance will cover a percentage of the individual's normal earnings. All the terms of disability insurance are expressly defined in the policy.
Bad faith denial for disability occurs when the insurance company fails to adequately honor a policyholder's legitimate claim. An insurance company will often try to provide some type of excuse for bad faith denial for disability in an attempt to evade legal action pursued by the aggrieved insured. They may say that a policy does not cover their situation, or that proper documents were not received in a timely manner, and numerous other excuses.
When a policyholder is unreasonably denied disability benefits, it is extremely helpful to contact a qualified legal expert who can evaluate the case to determine if it is a bad faith denial for disability. An experienced attorney can review the insurance policy to determine if the insured has cause for legal action. Many insurance companies have an appeals or grievances process that must be exhausted before legal action is possible. If the appeal is internally denied in a bad faith denial for disability case, the insured can file a lawsuit to seek compensation for their losses.
Bad faith denial for disability is a legal remedy that allows the insured to recover compensatory losses. These damages may include any out-of-pocket expenses incurred because of the bad faith denial for disability including interest on those losses, emotional distress, and more. In cases of malicious or willful bad faith actions, punitive damages may be awarded in a bad faith denial for disability case. Punitive damages are intended to punish the defendant and deter them from committing similar acts in the future.
Bad faith denial for disability can also occur in cases of health insurance claims that have been unreasonably denied due to a policyholder's disability. There are a number of laws which govern these cases as well.
If you or a loved one has been the victim of a bad faith denial for disability, please contact us to speak with a qualified and experienced attorney in your area who can evaluate your case to determine how best to protect and maximize your legal interests.
If
you would like more information on the elements of bad faith, please contact us to confer with a bad faith lawyer.
