Tag Archives: #BadFaithClaim

What Does It Mean When an Insurance Company Acts in Bad Faith?

Under US law, insurance companies are required to act in good faith to the person they insure. This means the insurance company is required to act fairly and honestly with the policyholder. Should the insurance company violate this good faith, the policyholder can file a claim against the insurance company. However, these claims can be complicated to handle, and it is greatly recommended to proceed with caution following the legal advice of an experienced lawyer. In Tennessee, the bad faith law only applies to first party insurance contracts, referring to the contract made between the insurance company and the policyholder. Insurance companies can act in bad faith by: Failing to communicate policy limits or vital information Refusing to investigate the claim Acting in a rude, threatening, or intimidating manner Refusing to negotiate on the claim in an appropriate amount of time Denying payments without a valid reason. Be aware of…
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