Even though you have responsibly paid your insurance premiums on a regular basis, you may still have difficulty receiving a claim payout. Known as insurance bad faith, it is not legal for insurance companies to respond to claimants in such a manner. However, that does not stop insurers from mistreating their clientele.
You've paid your insurance premiums on time for years. Then when you finally needed to file a claim -- whether for a car crash, an overflowing bathtub that damaged your flooring or an emergency medical procedure -- the insurance company denied your claim. You believe that the denial was unfair, but how do you show in court that the insurance company was acting in "bad faith?"
Most of us pay a substantial amount of money every month for multiple types of insurance to help protect us financially in the event of everything from a health crisis to a car crash to a burst pipe in our home. We expect that in return for paying the designated premiums every month, insurance companies will live up to the terms of our contract with them when we need to file a claim.