How to File a Bad Faith Insurance Claim in Houma
All insurance companies are required to act in good faith with their clients. An insurance agreement is a contract, and companies are required by law to avoid bad faith acts that violate those agreements. Despite the laws in place, many insurance companies attempt to avoid payment on claims they should pay or commit other wrongful acts that violate state laws.
If you are dealing with an insurer who is not acting in good faith, it is important to understand how to file a bad faith insurance claim in Houma. An experienced attorney can walk you through this process and help you pursue fair compensation.
State Laws that Handle Bad Faith Claims
There are two primary statutes that cover most bad faith claims. An individual could seek compensation for an insurer’s wrongdoing under these laws.
Payment and Adjustment of Claims
Under LSA Revised Statutes 22:1892 insurers are required to pay the amount of any claim due any insured within thirty days after receipt of satisfactory proofs of loss from the insured. Failure to make such payment within thirty days after receipt of such satisfactory written proofs and demand therefor when such failure is found to be arbitrary, capricious, or without probable cause, shall subject the insurer to a penalty, in addition to the amount of the loss, of fifty percent damages on the amount found to be due from the insurer to the insured, or one thousand dollars, whichever is greater. In the event a partial payment or tender has been made, fifty percent of the difference between the amount paid or tendered and the amount found to be due is owed. In addition, reasonable attorney fees and costs may be awarded.
Bad Faith Statute
Under Louisiana Revised Statutes § 22:1973, insurance companies are obliged to avoid certain types of bad faith acts. Insurers cannot:
- Misrepresent relevant facts about the claim
- Fail to pay settlements within thirty days of when the agreement was put in writing
- Mislead a claimant as to when legal proceedings are allowed to be initiated
- Neglect to properly compensate a claim within sixty days of satisfactory proof it is owed
These and other bad faith actions can justify filing a bad faith insurance claim in Houma. After realizing that an insurer is not acting in good faith, it is crucial to take legal action as soon as possible. With the help of a knowledgeable attorney, an individual can seek coverage of their claim and additional compensation through a civil claim.
Potential Compensation in Bad Faith Insurance Claims
An insurer might be liable under a bad faith claim if their actions were “arbitrary, capricious, or without probable cause.” The methods for penalizing a company differ depending on the specific statute they violated. Ultimately, most customers are entitled to their actual damages under either statute. This could include the compensation of the claim owed and potentially other collateral consequences such as lost work time, distress, or other losses.
In addition, any general or special damages to which a claimant may be entitled statutory damages are often available in bad faith cases, but they differ depending on the particular statute that the insurer violated. For example, violations of La. Rev. Stat. § 22:1973 may result in double damages or $5,000, whichever is greater. When filing a bad faith claim, a Houma attorney can provide more insight as to which damages might be available given the specifics of a case.
Learn More About How to File Bad Faith Insurance Claim in Houma
Bad faith insurance claims can be complicated. If you believe that your insurer is acting in bad faith, it is crucial that you work with an attorney who has experience handling cases of this nature. At Kopfler & Hermann, our legal team understands the intricacies of these cases and can work with you to get the compensation you deserve. To learn more about how to file a bad faith insurance claim in Houma, contact our office today.