What is the “bad faith statute”?

In 1990, the Pennsylvania Legislature enacted the “bad faith statute.” This statute requires that an insurance company take reasonable steps in dealing with an insurance claim under a contract of insurance, such as auto or homeowner’s policy. Bad faith is a very complex area of the law. Bad faith refers to dishonesty or fraud in a transaction, such as entering into an agreement with no intention of ever living up to its terms, or knowingly misrepresenting the quality of something that is being bought or sold. It may involve an intent to deceive or mislead you in order to gain some advantage. It is often related to a breach of a the obligation inherent in all contracts such as paying claims, or issuing a cancellation under an insurance policy.

Insurers may be guilty of bad faith for failing to promptly and thoroughly investigate a claim, unreasonably delaying payment, unreasonably denying benefits to a claim, using unreasonable interpretations in translating policy language, or refusing to settle the case or reimburse you for the entirety of your loss, etc. Fellerman & Ciarimboli has been successful in forcing insurance companies to pay money to their insured for mishandling their claims. If your insurance company failed to fairly handle your claim let us help you recover the money you deserve.

How does my automobile insurance cover?

Automobile insurance policies typically cover property damage, personal injury and other losses specifically covered by your policy. The insurance company has an obligation to investigate and pay your claim within a reasonable amount of time. If your insurance company fails to pay, or pays an inadequate amount under the policy they may be acting in bad faith.

What does my homeowner’s insurance policy cover?

Homeowners insurance policies require a insurance company to cover losses for fire, theft and liability. If your insurance company refuses to pay benefits for damages due to the loss to your home or its contents; or if your insurance company refuses to fairly and properly investigate and pay your claim, the insurance company might be acting in bad faith.

What does a life insurance policy cover?

Life insurance is a protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. Bad faith claims arise when insurers fail to pay life benefits, as they are contracted to do, to the designated beneficiary or beneficiaries.

What does my property insurance policy cover?

When the insurance company does not pay a reasonable amount for damages within a reasonable time, it may amount to bad faith. These are often claims that have been denied or that have been offered unreasonably low settlements for claims involving roof damage, hail damage, mold, fire, theft of personal property, injury and more.

What disability benefits do I have?

Insurers who refuse to pay disability benefits can be liable for the benefits owed, damages for emotional distress and punitive damages in order to punish fraudulent conduct.