Across the United States, millions of adults hold various insurance policies, from homeowners’ to auto and health insurance. They diligently pay their insurance premiums with the expectation of coverage when needed. After all, insurance companies are meant to be a safety net for individuals and families to fall back on when they encounter health, auto, or home expenses that fall under their policy’s purview. However, when the time comes to file a claim, policyholders frequently encounter denied or undervalued claims. Insurance companies, despite their promises of protection and support, often exhibit a pattern of denying claims or underpaying victims, a practice that contradicts the values they advertise. South Carolina, recognizing this issue, has implemented specific bad faith insurance laws to hold insurers accountable for failing to fulfill their end of the bargain.
Insurance companies like to use deceptive tactics to avoid fulfilling their obligations, often prioritizing profit over the welfare of their loyal customers. By wrongfully denying or delaying claims, insurers are engaging in insurance bad faith tactics, a form of unfair claims practice that leaves policyholders without the compensation they rightfully deserve. In response, states like South Carolina offer legal avenues to hold insurers accountable for their bad faith practices and enable policyholders to claim the coverage they are entitled to. This practice undermines the trust and integrity of the insurance industry.
Skilled Myrtle Beach bad faith insurance attorneys, such as those at The Lovely Law Firm, are adept at navigating these disputes and advocating for clients against powerful insurance companies and their legal teams. Whether you are dealing with a complex medical device claim, like an Abiomed Impella heart pump lawsuit, or facing a denied homeowner’s insurance claim, our lawyers will fearlessly pursue justice and rightful compensation on your behalf, ensuring that insurance companies uphold their end of the agreement and fulfill their obligations to policyholders.
What Is Considered Bad Faith In Myrtle Beach, South Carolina?
Insurance bad faith in South Carolina is a legal concept that encompasses any wrongful actions insurance companies use to avoid fulfilling their policyholders’ claims. This is considered to be in bad faith because the policyholder will have paid towards their policy and met all payments on time without interruption, but not received the benefits of having the insurance policy. When individuals invest in an insurance policy, they expect the insurance provider will offer compensation when necessary, as long as it is covered by their policy. Policyholders rightfully expect coverage according to the terms outlined in their policies. However, when insurance companies fail to deliver on their end of the bargain, they are acting in bad faith.
South Carolina’s bad faith insurance laws explicitly mandate that insurance companies must furnish the proper insurance forms within 20 days of the policyholder notifying them of the need for coverage. If an insurance company fails to uphold its legal obligation and fails to handle claims fairly, it opens the possibility for a bad faith insurance lawsuit to be filed by the policyholder.
Common Examples of Bad Faith Insurance Practices In South Carolina
Determining what constitutes bad faith practices in insurance claims is outlined by specific statutes under South Carolina Code § 38-59-20. This legal framework identifies a range of actions by insurance companies that qualify as improper claim practices.
Examples of bad faith insurance practices include:
- Knowingly taking facts or coverage out of context to policyholders
- Failing to promptly acknowledge communications or respond to communication attempts by the policyholder
- Neglecting to investigate and settle claims reasonably, further extending the time it takes to receive insurance coverage
- Not settling claims promptly and fairly when liability is evident, and expressed in ample amounts of evidence
Insurance companies may also act in bad faith by forcing policyholders to resort to lawsuits to obtain reasonable payment. More common acts of bad faith for insurance companies are:
- Offering inadequate settlement amounts
- Using legal tactics or cancellation of policies to dissuade claims
- Causing unreasonable delays and failures in claims processing.
Recognizing these behaviors is crucial for policyholders who wish to receive their insurance payments in a timely manner, if at all. Once identified, individuals can take appropriate steps to prepare and pursue their claims with legal guidance and support. That’s where our team of Myrtle Beach bad faith lawyers at The Lovely Law Firm can help. Don’t hesitate to reach out to us if you are experiencing any of the above issues with your insurance company.
What Are The Two Main Types Of Bad Faith Insurance?
In South Carolina, individuals who suspect an insurance provider has behaved improperly have the option to pursue legal action for bad faith insurance, seeking compensation for any damages covered under their policy. The state mandates insurers to handle disputes with policyholders reasonably and honestly.
Bad faith insurance claims typically fall into two main categories:
- First-party Claims – First-party bad faith insurance refers to deceptive or unfair practices by insurance companies toward their policyholders. It occurs when an insurer fails to act in good faith when handling a claim made by its own policyholder. This means that they are denying or delaying their own policyholder compensation. This typically involves denying legitimate claims without proper investigation, delaying payment unreasonably, or offering settlements that undermine the true value of the claim. In essence, first-party bad faith breaks the trust and contractual obligations between the insured individual and the insurance provider.
- Third-party Claims – Third-party bad faith insurance practices occur when an insurance company fails to fulfill its duty to defend and/or settle claims made against its policyholder by a third party. This usually includes inadequate investigation, unreasonable delays, or outright refusal to settle within policy limits. In the end, third-party bad faith exposes the insured to potential liability beyond what is covered by their policy. Essentially, third-party bad faith occurs when the insurer prioritizes its own interests and profits over those of its policyholder, breaching the duty of good faith and fair dealing.
Many policyholders are unfamiliar with insurance litigation and may not recognize these terms in the context of a bad faith insurance lawsuit, but might not fully grasp the distinctions between the two types of claims. Understanding these nuances is crucial for policyholders navigating the complexities of insurance disputes and seeking appropriate recourse for unfair treatment by their insurance companies.
How To Prove Bad Faith In South Carolina
Proving that an insurance company is acting in bad faith can be challenging, however, it is very important if you suspect unfair treatment during negotiations or filing an insurance claim. While experiencing delays or denials may raise concerns, these alone are not sufficient evidence of bad faith.
Under common law, demonstrating bad faith requires proving that the insurance company or claims adjuster knowingly engaged in unreasonable conduct, either by undermining or undervaluing a claim that is fully covered under their insurance policy. However, the burden of proof is high, as the insurer could argue they were unaware of any perceived unfairness or attribute it to aggressive negotiation tactics. Ultimately, contact insurance lawyers near you is the best course of action when trying to hold an insurance company accountable for engaging in bad faith practices.
How Can A Myrtle Beach Insurance Bad Faith Lawyer Near Me Help?
An insurance lawyer near you in Myrtle Beach at The Lovely Law Firm can play a pivotal role in holding insurance companies accountable for their bad faith practices. Our insurance lawyers are legal professionals who possess a deep understanding of insurance laws and regulations. This enables us to assess your situation and determine if bad faith has occurred. By using our experience and legal knowledge, we can help you navigate the complex legal landscape and advocate on your behalf against the insurance company’s wrongful actions.
An experienced Myrtle Beach insurance bad faith lawyer at our firm can:
- Thoroughly investigate your case
- Craft a bad faith demand letter on your behalf
- Gather evidence to support your claim
- Develop a strategic approach to pursue maximum compensation for damages incurred due to the insurer’s bad faith practices
Whether through negotiation, mediation, or litigation, our insurance lawyers near you can skillfully represent your interests and seek justice for the unfair treatment you have endured.
What our clients have to say on Google:
The lovely law firm has helped me, my mom, and brother with several cases to get the money we needed and deserved from insurance companies that would’ve screw us over wise. I recommend them to anyone wanting good results from a legal case
Addison Hull
February 14, 2024
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