Ways Insurers Stall
In some instances, insurance companies may try to stonewall a claim so that they can drag it out for months or years before offering a decent settlement offer. However, this strategy can potentially cause the insurer to face additional claims involving insurance bad faith. Here are a few common ways that insurance companies have stonewalled viable claims in the past.
Even though the claims representative knows that the claim is viable, he or she may refuse to make advance payments out of it to help the plaintiff pay for basic sustenance and living expenses. This is particularly problematic because personal injury victims may be particularly vulnerable due to facing mounting medical bills while also being unable to work due to the injuries that he or she suffered. The insurer may try to take advantage of the plaintiff’s vulnerable position by offering an unreasonable settlement because it knows how financially desperate the plaintiff is.
Some insurers may wrongly deny payment on one portion of a claim until the plaintiff agrees to accept settlement on the other portion of a claim. For example, the insurer may refuse to pay the medical portion of a claim until the plaintiff agrees to settle the property damage portion of the claim, or vice versa. By using different aspects of a claim as leverage, the plaintiff may choose to prematurely settle one portion of the claim against his or her best interests.
Requirement to Use Other Coverage
Another potential instance of insurance bad faith occurs when a claims representative says that the claimant must first use his or her own medical insurance coverage and exhaust it before the insurance company will agree to pay any remaining portion of the medical expenses.
If you think that the insurance company is acting improperly, discuss this information with a personal injury lawyer.
For helpful legal facts and details, we recommend attorney’s website.