Insurance companies provide coverage for all types of accidents and injuries. Automobile liability insurance pays damages to car accident victims when an insured causes a car accident. Homeowner’s insurance policies cover losses to the property and premises liability claims.
When an insured or claimant files an insurance claim, the insurance company has a legal duty to act in good faith to resolve the claim. If the company acts in bad faith, you may have the right to file a bad faith insurance lawsuit.
Examples of Bad Faith Insurance Practices
Bad faith is fraud or dishonesty in a transaction. A bad faith insurance claim arises when:
- The insurance company denies benefits;
- The claim was a covered loss;
- The insurance policy was valid; AND,
- The company knew or should have known there was no reasonable basis for denying the insurance claim.
Attempts to deceive an insured or claimant or deny them their rights can be considered bad faith. Examples of bad faith insurance practices include, but are not limited to:
- Failing to acknowledge a filed claim
- Intentionally misinterpreting the insurance policy terms
- Failing to conduct a thorough and prompt investigation of filed claims
- Refusing to communicate with an insured or claimant about their claim
- Changing the insurance policy terms after a claim is filed
- Using coercion or threats to force a claimant to settle
- Failing to provide a valid reason for denying an insurance claim
- Intentionally delaying the claims process, such as requesting unnecessary or overly burdensome documents or information
- Offering a settlement that is much lower than the case is worth
- Failing to issue a prompt settlement check after the parties sign a settlement agreement
An insurance company has the right to deny claims. Not all denials indicate bad faith. For example, an insurance company may deny a claim because the policy has expired or does not cover the loss or because of valid disputes of liability or damages.
Contact an attorney immediately if an insurance company denies your claim or acts in bad faith. A personal injury lawyer can review your case to determine if the company acted in bad faith.
What Is the Deadline for Filing a Bad Faith Lawsuit in Nevada?
The statute of limitations for most bad faith insurance claims is four years. Lawsuits filed after four years are subject to dismissal by the court.
However, you should not wait to contact an attorney about a bad faith claim. Factors in your case and exceptions to the rule can change deadlines for filing claims. Additionally, evidence could be lost if too much time passes before seeking legal advice.
Damages Available for a Bad Faith Insurance Claim in Nevada
The damages for a bad faith insurance claim include economic and non-economic damages. However, the damages differ from the types of damages available for a personal injury claim.
If you prove bad faith, you could receive compensation for damages including:
- The value of your initial claim that the insurance company unreasonably denied
- Emotional distress caused by the insurance company’s actions
- The cost of hiring an attorney and filing a bad faith lawsuit
Courts may award punitive damages in some lawsuits. Punitive damages are awarded to “punish” the insurance company for malicious and intentional conduct. How much your bad faith insurance claim is worth depends on the facts of the case.
All Insurance Companies Are Required to Act in Good Faith to Process Claims
Insurance companies may act in bad faith regarding any claim. Our attorneys handle all types of bad faith insurance claims, including:
- Automobile insurance
- Medical malpractice insurance
- Homeowner’s insurance
- Liability insurance
- Health insurance
- Business owner’s insurance
- Personal Injury Protection insurance
- Business insurance
- Corporate insurance
- Disability insurance
- Workers’ compensation insurance
- Commercial property insurance
Insurance laws can be confusing. An experienced bad faith insurance lawyer understands the law and how to hold insurance companies responsible when they do not act in good faith to pay valid claims.
What Should I Do if I Suspect an Insurance Company is Acting in Bad Faith?
If you believe you are being treated unfairly by the insurance company, there are several things you should do to protect your rights, including:
- Keep a record of all conversations and activities related to your claim.
- Keep copies of all correspondence and documents for your claim.
- Document your damages by collecting proof of your medical bills, lost wages, expenses, injuries, etc.
- Locate your insurance policy if you are the policyholder.
- Gather evidence proving liability, including accident reports, a list of witnesses, accident scene photographs, etc.
- Note each incident of bad faith, including the date, time, conduct, and the person’s name.
- File a timely appeal of the claim denial.
Contact an attorney from Battle Born Injury Lawyers as soon as possible to discuss your legal options at 702-570-9000. Provide all the information you have gathered for your attorney to review.