Bad Faith Insurance Attorneys in Pennsylvania

What Is Bad Faith Insurance?

It has long been recognized that the utmost fair dealing should characterize the transactions between an insurance company and its insured. Moreover, insurance companies have a duty to deal with their insureds on a fair and frank basis, and at all times, to act in good faith. The duty of good faith originates from the insurer’s status as a fiduciary for its insured under the insurance contract, which gives the insurer the right to handle and process claims. The Pennsylvania Legislature has created a statutory remedy for bad-faith conduct by an insurance company toward its insured.  See 42 Pa.C.S.A. § 8371. In this regard, the Pennsylvania Bad Faith Statute provides: 

In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions:

1. Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.
2. Award punitive damages against the insurer.
3. Assess court costs and attorney’s fees against the insurer. 

42 Pa.C.S.A. § 8371.

While the Statute does not define “bad faith”, nor does it set forth the manner in which an insured must prove “bad faith”, the Pennsylvania Supreme Court recently set forth a two-part test for determining “bad faith” under the Statute.  See Rancosky v. Wash Nat’l Ins. Co., 170 A.3d 364, 376 (Pa. 2017).  Specifically, the Pennsylvania Supreme Court stated as follows:

[I]n order to recover in a bad faith action, the plaintiff must present clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis. 

Id. at 376.  Additionally, although proof of an insurer’s motive of self-interest or ill-will is not a prerequisite to prevailing on a bad faith claim, evidence of self-interest or ill-will is considered to be probative of the second prong of the test.  Id.  In this regard, Justice Wecht, in his Concurring Opinion in Rancosky, set forth various examples of bad faith conduct by an insurer.  Specifically, Justice Wecht stated as follows:

Many species of bad faith may flourish notwithstanding the absence of either “self-interest” or “ill will”.  Shoddy claims-handling, lack of diligence, non-responsiveness, haphazard investigation, unreasonable denials, and the like, all may come within the statutory definition of bad faith while nonetheless falling short of the “self-interest”/”ill will” threshold. 

Id. at 379.  

The Bad Faith Insurance Statute was designed to remedy instances of bad faith conduct of an insurer, including bad faith in the insurer’s investigative practices, whether committed before, during or after litigation.  Bad faith conduct can include the lack of a good faith investigation into facts as well as the failures of the insurer to communicate with the claimant.  A bad faith cause of action is also not dependent upon a finding of coverage.

Bad Faith claims are very fact specific.  If you believe that you have been wronged by your insurance company, contact the attorneys at HGSK for a free case evaluation.  

Examples of Bad Faith Insurance Practices

Insurance Bad faith claims essentially mean that the insurance company has unreasonably denied or delayed payment of valid claims. Some examples of actions that might constitute bad faith include:

• Unreasonable denials of coverage;
• Failing to fully, fairly and promptly investigate and evaluate claims;
• Failing to offer a fair and reasonable amount in settlement of claims; 
• Ignoring evidence favorable to the insured; 
• Misrepresenting provisions of a policy of insurance;
• Elevating the interests of the insurance company above those of the insured;
• Denying claims without conducting a proper or sufficient investigation;
• Failing to explain denial decisions;
• Engaging in unfair or deceptive acts or practices;
• Failing to timely obtain and/or secure evidence relating to a loss;
• Failing to provide information about the policy limits;
• Failing to promptly communicate with claimants; 
• Attempting to implement standards that deviate from insurance industry practices;

What Kind of Damages Could I Receive From a Successful Bad Faith Claim?

Under the Pennsylvania Bad Faith Statute, plaintiffs may seek bad faith damages from an insurance carrier including: punitive damages, attorneys’ fees, interest and court costs.  Specifically, the Bad Faith Statute provides: 

In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions:

1. Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.
2. Award punitive damages against the insurer.
3. Assess court costs and attorney’s fees against the insurer. 

42 Pa.C.S.A. § 8371.  Additionally, plaintiffs may be entitled to consequential damages arising from the bad faith handling of their claims.  

Experiencing Bad Faith? Consult with an Insurance Lawyer at HGSK Law Firm

If you believe that your insurance company is not acting in good faith and is acting unreasonably in investigating, handling, or paying your claims, you may have valid legal grounds to file a bad faith insurance lawsuit.

With over 50 years of collective experience, we are known throughout Pennsylvania for our passion for pursuing justice and compensation for our clients. 

As a highly ranked insurance attorney specializing in bad faith, we are competent to handle your case, even the most complicated one. Contact HGSK Law Firm today to schedule a free consultation and see how we can help you.

Bad Faith Insurance Claim Attorney Serving Philadelphia, Reading, Allentown, Lower Bucks, and More!

If you are located in Pennsylvania and are seeking legal assistance to fight your insurance claim denial, you have come to the right place. At Haggerty, Goldberg, Schleifer & Kupersmith, P.C., we will go above and beyond to get you the compensation you may deserve.

HGSK bad faith insurance lawyers will help you receive the compensation you deserve. Contact us at 267-350-6600 or complete the contact form for a free consultation.

Bad Faith Insurance Lawyers You Can Turn to for Honest & Effective Legal Counsel

Our Pennsylvania bad faith insurance attorneys at Haggerty, Goldberg, Schleifer & Kupersmith, P.C. are committed to fighting for the disability insurance benefit you deserve. If your insurance company is trying to deny you disability benefits, our team of disability insurance lawyers can help you by fighting the insurance company’s denial.

Since bad faith insurance laws differ across the United States, it’s also important to find a bad faith insurance attorney experienced in the type of insurance related to your claim. Our bad faith insurance attorneys have decades of experience handling lawsuits of bad faith insurance claims. If you believe you may have a bad faith lawsuit on your hands, contact our law office today for legal advice and a free consultation.

Highly Esteemed Bad Faith Insurance Attorneys Backed With an Award-Winning Reputation

If you have been unfairly denied an insurance claim due to bad faith, it may be worthwhile to seek legal assistance. Sometimes insurance companies will refuse to pay out benefits, despite the fact that the purpose of insurance is to protect people. This unfortunate reality is far too common and requires the legal knowledge of a bad faith insurance attorney.

Our lawyers represent those with valid claims which have been unfairly denied coverage due to bad faith. If a bad faith case has impacted you, you may be entitled to compensatory damages and possibly punitive damages.

Frequently Asked Questions About Bad Faith Insurance Cases

If you are thinking about filing a bad faith insurance claim in Pennsylvania, there are some things you should know.

What Is a Bad Faith Claim Against an Insurance Company

Bad faith insurance refers to an insurance company’s attempt to not carry out its obligations to protect policyholders by refusing to pay or investigate the policyholder’s claim. When this happens, the policyholder can refute the claim denial with the help of a bad faith insurance attorney.

Can You Sue Someone for Bad Faith?

Policyholders have the right to file a lawsuit against the insurance company if it is practicing bad faith. One must seek legal assistance in order to do this effectively.

How Do I Know if I Should File a Bad Faith Insurance Claim?

If you request a claim from the insurance company and are denied, yet your request was within your policy’s guidelines, you are likely a victim of bad faith. With that being said, to further ensure that you are a victim of bad faith, talk to a bad faith insurance attorney and get his or her professional opinion.

How Do I Prove I Have Bad Faith Insurance?

You will have to keep documentation of your claim in order to prove the validity of your case. Keep all documents such as:

• Photos
• Receipts
• Letters to the insurance company
• Reports
• Records of any other correspondence with the insurance company

How Long Does a Bad Faith Lawsuit Take?

The time frame is different for every bad faith insurance claim. Some insurance companies will pay out the beneficiary after the final demand is made via a letter. Other times, insurance companies will have to go to court with the policyholder suing them, which could be prolonged for months.

How Do I File a Bad Faith Insurance Claim?

There are a few steps that one must follow to file a bad faith insurance claim, including:

Reviewing Your Insurance Contract. Find the violation in the contract and make sure that it’s dated.

Keep Logs on Your Claim. You will be required to prove the validity of your original claim and that does in fact meet the terms of the policy. Be sure to gather all of your documents, photos, reports, receipts, and correspondence with the insurance company.

Document the Denial of Your Claim. If your claim has been denied, request that a supervisor at the insurance company reviews the claim as well as the denial.

Make One Last Demand. The last thing you should do before you file a lawsuit is send a written letter to the insurance company demanding detailing of your claim. The insurance company has 15-60 days to pay the claim that you demand. If the insurance company does not pay you, you can now file the actual lawsuit.

File a Complaint with Your State’s Department of Insurance. Services provided by the state will often attempt to resolve a dispute via mediation.

Initiate a Bad Faith Lawsuit. You will need to hire a bad faith lawyer to help you carry out your lawsuit. You and your lawyer should seek compensation under the policy as well as damages for the insurance company’s bad faith.

The Best Interests of Our Clients Always Come First

At HGSK, we don’t get paid until you do. The Pennsylvania bad faith insurance lawyers at Haggerty, Goldberg, Schleifer & Kupersmith, P.C. will fight to ensure you get the compensation you may be entitled to. Call our office today at 267-350-6600 to schedule a free consultation.

Some Examples of Bad Faith Insurance Claims Our Bad Faith Lawyers Have Battled Include:

• Improper settlement tactics
• Refusal to pay benefits
• Not explaining why a claim was refused
• Not conducting a dutiful investigation