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    Examples of Bad Faith Claims in Houma

    Bad faith claims can take many forms. Wrongful denials or significant delays can leave you unable to pay for necessary treatments or deal with crippling financial debt. When insurance companies decide to withhold the compensation you are owed in a claim, they could be subject to legal liability.

    Being aware of examples of bad faith claims in Houma can help you understand whether your insurer is mistreating you. If you believe your insurance company is acting in bad faith, it is crucial to get in touch with a seasoned attorney as soon as possible. A dedicated lawyer can help you understand your legal options.

    Duty of Good Faith Owed by Insurance Companies

    All insurance companies owe a duty of good faith and fair dealing with their customers. They have an affirmative duty to adjust claims promptly and fairly with an effort to make reasonable settlements with the insured or a claimant. Failure to do so may constitute a violation of Louisiana Revised Statute § 22:1973 or LSA Revised Statute 22:1892. When an insurer violates these bad faith statutes, their insured can take legal action with the help of a seasoned Houma attorney.

    Examples of Insurance Company Bad Faith

    Bad faith claims in Houma can take many forms. It is always advisable to consult with a knowledgeable attorney to see whether an insurer’s mistreatment could constitute a bad faith claim.

    Failure to Investigate

    Sometimes, insurance companies will negligently or purposely fail to investigate a claim. Insurers are required to reasonably investigate all claims before they can deny them. Failing to do so is an act of bad faith and is actionable under state law.

    Underpayment of Claims

    Many insurance companies attempt to underpay claims to save money. Underpaying a claim is an act of bad faith when it is arbitrary or capricious in nature. If there is no justification for reducing the amount paid under the claim, they should pay it in full.

    Unreasonable Delay

    An unreasonable delay most commonly occurs in the investigation or payment stages. Insurance companies might take too long to investigate a claim or even get started on considering the insured’s request. Insurers also might hold off on sending payments negligently or intentionally.

    Refusal to Settle

    An insurance company’s refusal to settle could violate state law when they have no reasonable justification to pursue litigation. Forcing insureds to file a lawsuit when they are entitled to those funds is an act of bad faith.

    Unreasonable Denial of Benefits

    An insurance company should only deny benefits with proper and reasonable grounds. They are expected to provide an explanation for any denial. An unreasonable denial is usually made to save money, but is an act of bad faith.

    Cancellation of Policy

    Some insurers will try to cancel a policy to avoid payment. They will often claim that premiums were not paid when they were or some other false information to attempt to avoid payment. Canceling a policy without a reasonable basis is an act of bad faith.


    A false statement about coverage can cause irreparable harm to an insured. Wrongful misrepresentation on the part of an insurer could be an actionable act of bad faith under state law.

    Pursue a Bad Faith Insurance Claim in Houma with the Help of a Skilled Attorney

    The aftermath of an accident or natural disaster is difficult enough without the added headache of an uncooperative insurance company. Insurers who do not act in good faith can limit your ability to recover the compensation you need. If you believe your insurance company is acting in bad faith, do not wait to take legal action.

    Armed with these examples of bad faith claims in Houma, you can begin to determine whether you have a claim. An experienced lawyer can walk you through the claims process and ensure that you are treated fairly. Call today to learn more.