False Imprisonment Lawyer Orange County Consultants
Insurance bad faith is said to occur if the insurance company denies to honor a covered claim of a policy holder. Subsequently, this results to the policy holder receiving the wrong amount. In a different illustration, insurance protection bad religion takes place in the event the corporation intentionally commits fraud through the investigation so it could spend the coverage holder a a lot less quantity. For instance, if the company delays the investigation or assessed the damage with fraud, the law considers such acts as insurance bad faith. As such, consumers are always warned to conduct investigations themselves before purchasing a policy.It is rather hard to determine if the insurance company is performing good faith towards its policy holders.
Since insurers have their own interest to protect, it can?t be helped if they sometime underestimate the investigation.
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For instance, if the insurer conducts an investigation but failed to consider one aspect of the damage, the policy holder may receive inadequate claim. But there are also occurrences where an insurance company deceives policy holders so it can avoid paying damages. Malicious actions is serious because there is an intent to deceive; if this is proven in court the policy holder is entitled to ask for even more payment. Here are some situations that would make the insurer guilty of bad faith.
1. Insurance company denies claim because the cost of the damage is expensive.
2. Abrupt cancellation of the policy even if the holder?s claim is covered or not in conflict with the agreement.
3. Using inaccurate or wrongful information of a factual or legal nature to diminish, deny or delay payment of a claim.
4. It is also erroneous if the investigation is unfair or if it favors one party alone.
5. Blaming the policy holder so the insurer can diminish the amount to be paid is also considered erroneous.
6. Settling the claim but the process was manipulated without notice or knowledge of the insured is also considered wrong.
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An insurance company is expected to honor it obligation to its policy holder. The law protects the well-being of insurance policy holders and any omission from the other party will be held liable. Which is why both parties must act in good faith in order to create a harmonious relationship so the insurance industry will continue to flourish.
It is often hard to pinpoint who is at fault when the accident is quite vague. However, the liability often points to the person who was negligent when the accident happened. For instance, if John was driving on the road and suddenly he was hit by Peter?s vehicle and the investigation revealed the Peter was at fault, the latter will have to handle the damages because he was the careless one. But there are instances where the conditions of the accident are kind of vague and for this matter a thorough investigation must be performed to determine who is legally at fault.
Basically the careless person is usually blamed and must handle damages. That person may be required to pay the whole cost or a fraction of the damage. If his insurance includes third party provisions, the injured person may be compensated by the doer?s insurance company. Meanwhile, the careless individual can also demand compensation from his insurance company.
But there are times when the accident that happened involved complex aspects. For example, if the John was hit by another car but after assessing the accident it was found out the he was partly negligent, he cannot compel the person who hit his car full compensation. Although he was the victim, the fact that he made some lapses, the owner of the vehicle will be entitled with partial compensation. Likewise he can?t expect full compensation from his insurance provider if there are provisions which limit full compensation due to negligence.
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There are also situations where an injured person cannot make a claim. For instance, if a person took his car on the road on a suspended license, if he is injured in an accident, there?s a possibility that he cannot accept compensation. The reason for this is that the injured individual has no right to be on the road because he does not have a driver?s license. Even if John obeyed traffic rules, the person who hit his car is not liable.