John Hinkle Jeffrey Moffett Amber Wheeler-Thompson H. Wesley Williams, III
Bad Faith Litigation
Running an insurance company is filled with unique difficulties and challenges. You must operate the company in a way that produces revenue, profit, and growth. At the same time, you must also meet the financial obligations you owe to legitimate claimants. Your clients look to the money promised by their insurance policy in times of tragedy and distress, and they should know that you are there for them when they are most in need. However, you need not be taken advantage of. You must defend your firm against any attempt to force an unjust settlement through litigation.
What is Bad Faith Insurance Practice?
One of the most common accusations made against insurance companies is that they acted in “bad faith.” It is important to know exactly what this means before you mount your defense.
In Mississippi, insurance companies are prohibited from using vague or shifty wording to avoid obligations under their policies. To meet the good faith standard, an insurance company must investigate the alleged damage, determine what is covered under the policy, and pay the required amount.
Examples of bad faith insurance practice include:
- Denying coverage when it is due
- Offering a settlement that is less than that stipulated by the policy
- Suddenly and unjustifiably cancelling a policy
- Changing a policy without notice or consent
- Misrepresenting crucial policy information
- Unreasonably delaying the investigation of a claim or the paying out of it
If your company has done everything according to law and policy and if you have been completely transparent in all your dealings with your clients, then you have acted in good faith. However, some people owing to grief, desperation, or dishonesty will accuse your company of acting in bad faith and pursue litigation against you.
How a Bad Faith Litigation Law Firm in Jackson Can Help
You must take bad faith litigations seriously. Both your company’s reputation and financial solvency are at stake. Sometimes the exposure for bad faith can exceed that of the underlying insurance claim. Markow Walker attorneys have experience defending against bad faith allegations and lawsuits. If you are being sued for bad faith practices, do not hesitate to call Markow Walker to discuss your legal options.