Insurance Bad Faith

An insurance policy is a contract between the policyholder and the insurance company. In exchange for the payment of premiums, the insurance company agrees to:

• Provide the coverage described in the policy
• Act fairly and in good faith toward its policyholders
• Consider the interests of its policyholders equal to its own interests

An insurance company is acting in bad faith when it:

• Denies the payment of valid claims
• Unreasonably delays payment
• Fails to thoroughly investigate an insured’s claim
• Underpays insurance claims without a good reason

What can you do if your claim was denied by an insurer? What happens when your insurance company keeps delaying a decision and weeks and months go by without a settlement? When you are denied a rightful claim by your insurance company, especially your own insurer, talk to the lawyers at Nelson Langer Engle, PLLC in Seattle, Washington.

Washington state law applies to all insurance contracts entered into with Washington residents, unless the policy is preempted by ERISA. Implied in every Washington insurance policy is the “duty of good faith and fair dealing.” This duty precludes the insurance company from doing anything to deprive an insured person of the benefits and/or protection provided in the policy.  Unreasonable conduct by the insurance company in denying or failing to adequately investigate a claim may constitute a violation of the implied duty of good faith and fair dealing.

An integral part of an insurance company’s duty is to diligently seek out evidence that supports an insured’s claim. When an insurance company searches for, or relies solely upon, evidence which serves to support a denial of an insured’s claim, it holds its own interest above that of its insured and may be deemed to have violated the implied promise to deal with the insured fairly and in good faith.

All insurance contracts are interpreted by the court to carry out the reasonable expectations of the insured party. The contract will be studied to obtain its meaning, and such meaning must be clear and unmistakable. Generally, any terms which are not clear will be interpreted to benefit the insured. You do not have to prove that the company intended to cause harm, only that it failed to honor its agreement and had no cause not to pay the claim.

The attorneys at Nelson Langer Engle, PLLC understand and are experienced  at handling these types of issues and can help clients realize the benefits they expected when they purchased their insurance protection. Insurance is purchased in a spirit of trust that insurance companies will abide by the promises they make. We make sure that they do.