It’s Not Bad Faith If…

Although advertized to be “like a good neighbor” or keeping you in “good hands,” insurance companies are in business to make money. The easiest way for them to do this is to not pay claims on the policies they have sold.

Increasingly insurers are marketing specialized products that appear, based on their name, to provide broad coverage to policyholders. One example is a “supplemental accident” policy. A closer look at many such policies reveal that the insurance company only has to pay a claim for specific injuries (death, blindness or the loss of a limb) and only if the injury occurs in specific circumstance (commonly a transportation-related accident). Despite the broad name of the policy, no other injuries are covered. Then the insurance company can further reduce the payment it must make to a policyholder if the injury did not occur in an airplane, and then reduced it again if the policyholder exceeds certain ages.

These policies are usually inexpensive, but you get what you pay for.

Although frustrating, it is usually not legally improper (or in bad faith) for an insurance company to refuse to pay on a claim for an injury or loss that is not covered under the terms of the policy.

So, will your loss be covered?

Review your insurance policy coverage each time you purchase or renew a policy to be sure you understand exactly what is and is not covered. If you’re still unsure, follow-up with your insurance agent or a representative of the insurance company until your questions have been answered.

Even the most diligent of policyholders still have claims denied. If you think your insurance company has improperly denied your claim, contact Aitken * Aitken * Cohn for a free consultation.

It's Not Bad Faith If...
Casey R. Johnson, Esq.