Insurance Bad Faith
Given the current level of distrust and animosity between consumer advocate groups and insurance companies, it is not surprising to find that there are websites devoted to bad claims practices of insurance companies. Check this example, www.allstate.org. Allen and Flatt is a leader in Bad Faith litigation and legislation efforts. See Our Successes against numerous insurance companies.
Under California law, when your insurance company breaches its duties under its insurance policy, it may be liable for the tort of bad faith. A jury may award compensatory and, in certain cases, punitive damages as a result of the mishandling of insurance claims. A promise of good faith and fair dealing is implied in every insurance policy. This is a duty beyond mere payment of the loss claimed under the policy.
Punitive Damages
A jury may award punitive damages if it determines that an insurance company acting in bad faith did so with oppression, fraud, or malice. An insurance company may be liable for punitive damages because of the acts of its employees. The California Unfair Claims Practice Act (Insurance Code Section 790.03 (h) contains standards for the investigation and handling of insurance claims. The California Department of Insurance is responsible for enforcing this statute and related regulations. Please report all your complaints to the Department of Insurance. Not only must they investigate each claim, but every report of infraction is compiled for future reference. If enough of us speak up, they will have to act on our behalf.
First Party or Third Party
Prior to 1988, if another person ("third party") injured you, you could sue the third party's insurance company for bad faith. In 1988, the law was changed so as to permit you to sue only your own insurance company ("first party") for bad faith. In 1999, the California Legislature enacted a law, which would resurrect the concept that you could sue the other party's insurance company for bad faith. However, the 1999 law permitting third party bad faith actions was nullified by the defeat of Propositions 30 and 31 in the March 2000 election. The insurance companies spent 50 million dollars to defeat these laws. The fight is not over. Consumers will prevail with your effort and ours.
Call us at 1-888-752-7474 or Contact Us Online to discuss your legal options.
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