Insurance companies sometimes act in a way that is not upstanding.If there is an event that causes a claim on an insurance policy, the insurance company does not act as it is supposed to, by denying your claim, delaying payment, paying you less than you are owed, etc.If you don’t get the money you deserve, you may have to resort to litigation.The process for bringing the suit will help you if you find yourself in this situation.
Step 1: If the insurance company delays the payment of your claim, you should file a lawsuit.
Insurance companies make money.The longer an insurance company can hold on to the money it owes you and use it for its own purposes, the more likely you are to settle for less than you really need.In a timely manner, insurance companies are obligated to pay valid insurance claims.If your insurance company has taken too long to pay your claim, you can take it to court.Ask your insurance company why it’s taking so long to pay your claim, and send it to you in writing.You will need this later on.
Step 2: If your insurance company tries to settle your claim for a low amount of money, you should file a lawsuit.
When you make a claim, the insurance company tries to talk you down from the amount you want to pay for your losses.While you may be able to reach an amount both of you agree on, sometimes your insurance company will refuse to offer you anything but a small amount of money and hope that you will take it instead of trying to fight the company over.The insurance company can be sued if it is unwilling to cover your losses in a reasonable manner.If the insurance company is only willing to pay you a low amount, you need to ask your claims adjuster for a reason.You will need this later.
Step 3: If your insurance company denies your claim, you should take it to court.
Many reasons may be given by your insurance company for denying payment in order to not pay your claim.It could be that your particular policy does not cover the exact circumstances of your loss, that you did not do enough to prevent it, or that the claim is too high.If you feel that the reason for denying your claim doesn’t seem fair or that it is not rational, you can file a lawsuit against your insurance company.Make sure that your insurance company gives you a reason for denying your claim in writing so that you can reference it later on.
Step 4: Your insurance company should be sued.
Before an insurance company issues you a policy, it engages in a process called “underwriting”, in which it investigates you and your history to determine if it should offer you insurance.Sometimes, the insurance company will refuse to pay your claim because you were too great a risk to be insured in the first place, and so they will try to get you to have another policy.It will try to cancel your policy in order to not pay your claim.You can file a lawsuit against your insurance company if they do this.If you notice this type of behavior, you should check to see which part of the insurance company is processing your claim.Be on the lookout for your insurance company taking this type of action against you if it is the latter.If your insurance company issues you a check, do not cash it.It could be seen as accepting the insurance company’s decision to cancel your insurance in light of a claim it doesn’t want to pay.
Step 5: The insurance company failed to defend you in court.
Your insurance company protects you from certain damages in lawsuits against you.This promise is often referred to as an insurance company’s duty to defend.Legal counsel will be hired by the insurance company when they have a duty to defend.All legal fees and costs will be covered by it.Your insurance company will have a duty to defend if the damages are covered by your policy.You can recover the costs of defending yourself if your insurance company fails to defend you.Attorneys fees for defending yourself and suing the insurance company could be included in these costs.
Step 6: Understand why you are taking action against your insurance company.
The “cause of action” is the formal way of saying that you have the right to file a lawsuit.In relation to insurance companies, you can bring a lawsuit under one of three causes of action.These are examples of “bad faith” on the part of your insurance company, which basically means that it did something wrong without any good reason for doing so.If your insurance company has engaged in any of these activities, you will be able to bring a lawsuit against them.The majority of lawsuits against insurance companies are for bad faith violations.A breach of contract is when your insurance company has violated the terms of the insurance policy it offered you and on which you have been paying premiums.These activities may be considered a violation of federal or state consumer protection law, which prevents businesses from engaging in unfair or deceptive business practices, or from making fraudulent statements.If your insurance company has made false statements to justify its actions, you can bring your lawsuit on this ground as well.
Step 7: You can contact your insurance company.
If you want to resolve your dispute before threatening litigation, contact your insurance company.If you can work the issue out on your own, contact your insurance company and talk to your agent.Ask to speak to their supervisor if your insurance agent is not helpful.Get the reason in writing when you ask why your claim was denied.If you intend to file a lawsuit against your insurance company, you will need this as evidence.
Step 8: Obtain a copy of your policy.
You should have a copy of the insurance policy in your records.You can request a copy of your insurance policy if you don’t have one.
Step 9: Make sure to read your insurance policy thoroughly.
This is important.If you are going to file a lawsuit against your insurance company, you need to know what your policy says.The proper process for submitting a claim, how payment is handled, and how disputes are resolved according to the contract are things to pay particular attention to.Make sure you have fulfilled your contractual obligations.If you assert that your insurance company has failed to follow through with its contractual duties, you will want to make sure that they don’t make the same claim against you.Follow the process exactly if your policy states that you must submit a claim.
Step 10: Under the terms of the contract, make sure your loss is covered.
Insurance contracts can be very specific about what is and isn’t covered.As you read through your policy, check to see if the facts surrounding your loss match the types of loss your insurance company has contractually agreed to cover.
Step 11: Put together an estimate of your losses.
Depending on the type of insurance you are dealing with, you will want to make sure that you have proof of your claim.Records, bills, receipts, and photographs are needed to show you have a valid claim.The records of the conversations you had with your insurance company should be collected.You will be able to show that you have taken steps to resolve your claim.
Step 12: You should research the insurance law of your state.
You should be aware of what your state’s insurance laws say before you engage in litigation.There are many online resources that can help you understand the insurance laws of your state.Understand the laws that will govern your lawsuit by reading your state’s laws.
Step 13: You can file a claim with your state’s department of insurance.
Every state has a department dedicated to assisting consumers with regards to insurance claims, and you can visit each state’s website for more information or to file a complaint online.Your state’s insurance department may ask for documents or evidence after you file your claim.resources to help you understand your state’s insurance law can be found on the website for the department of insurance.You may have to wait a long time before your dispute is resolved because most state’s insurance departments receive many claims each day.Hire an attorney if you want quicker results.Some states’ insurance departments will wait until your attorney has litigated your case before intervening if you hire an attorney.
Step 14: You should hire an attorney.
You might not have the time to research and understand insurance law on your own.You might be too busy to read through the long list of statutes.A local attorney specializing in insurance law is the fastest way to get your claim resolved.Attorneys often accept insurance cases on a contingency-fee basis, meaning they will take a portion of the money you are awarded if you win.If you lose your case, you won’t be charged.The attorney will be able to sit down with you and discuss the issues of your particular case to determine the best way to handle your denied claim.Don’t be afraid to take advantage of the free consultation you can get from an attorney who specializes in your state’s insurance laws.As the lawsuit progresses, your attorney will contact you for more information.
Step 15: A complaint can be filed with the appropriate court.
A complaint with the appropriate court is the first step in a lawsuit.You will most likely be in the state trial court for the county in which you live if insurance law is based mostly on state law.Your attorney will submit a document to the court stating your case in broad terms and your cause of action for bringing the lawsuit, which will probably be “bad faith” on the part of the insurance company.Your attorney will get a copy of the insurance company’s answer to the complaint.You can get a general idea of the insurance company’s position from this document.
Step 16: Don’t be afraid to engage in discovery.
The process known as discovery will begin after the insurance company has responded to your complaint.The process of getting a sense of the strengths and weaknesses of each side’s case allows them to decide if the case should be settled or argued in front of a judge and jury.Your written correspondence with the insurance company will be useful here.If you don’t have certain information about your case that you think the insurance company has in its records, this is the time to ask.You have to give the insurance company certain records and documents.The insurance company will meet with you and your lawyer in an official setting to ask questions about your case during this process.The majority of cases are settled in this stage.If your insurance company sees that you are willing to take legal action to protect your interests, it will likely offer to settle your case with you to save itself the expense of trial.
Step 17: There is a pre- trial conference.
If the discovery process has ended and no settlement has been reached, you, your lawyer, the insurance company, and its lawyers will all meet with a judge to discuss certain issues before the trial begins.The rules for admitting certain types of evidence, which issues the parties agree upon, and the like will be included.
Step 18: Go to trial.
Your attorney, your insurance company, and its attorneys will appear in court on the day of the trial to argue your case.The insurance company will try to argue that it has not broken the law when the facts of your case are presented by your attorney.If you are called to testify at a trial, be sure to be consistent with the facts of your case, tell the truth, and remain calm and relaxed.You will likely get a verdict in your favor if you have a valid claim and the documentation to back it up.