When you purchase insurance, you expect to be dealt with fairly and for the terms of your insurance agreement to be upheld. When insurance providers collect premiums but then fail to live up to their side of the bargain by providing coverage in covered situations, this is not only immoral it is illegal. Your insurance company has a legal obligation to fulfill the terms of your insurance contract and can face substantial penalties when it doesn’t.
Caruso Law Offices can help explain your legal rights during this situation in a free consultation. We can review your insurance policy and explain whether the insurance adjuster’s actions rise to the level of bad faith insurance.
What Is Insurance Bad Faith?
Bad faith insurance occurs when your insurer does not act with good faith and fair dealing. Some common examples of bad faith insurance practices that are outlawed by New Mexico’s insurance laws include:
- Failing to pay out properly for valid claims
- Failing to conduct an investigation at all or conduct an investigation in good faith
- Making misrepresentations about the terms of your insurance policy
- Failing to acknowledge claims
- Failing to accept or deny coverage within a reasonable time
- Failing to promptly and fairly settle claims once liability is clear
- Failing to provide an explanation for a claim denial
- Requiring the insured to litigate claims that should be covered under the insurance policy terms
Warning Signs of Bad Faith Insurance Practices
The following may indicate that you are a victim of bad faith insurance:
- You receive no communication from the insurance company acknowledging your claim.
- The insurance denial letter points to policy language that doesn’t exist.
- You are wrongfully blamed for the accident.
- The insurance adjuster won’t return your phone calls, emails, or letters.
- The denial doesn’t contain any facts that are specific to your case.
- The denial doesn’t contain a reason why your claim is denied.
If you notice these warning signs, you may have a valid bad faith claim. You can protect your rights by:
- Contacting a bad-faith insurance lawyer as soon as possible
- Documenting all communications with the insurance company
- Requesting written clarification for any denials
- Reviewing the terms of your insurance policy and coverage
- Keeping records of conversations
What Financial Compensation Can I Recover in a Bad Faith Insurance Claim?
If your insurance company wrongfully denies your claim and is found to have committed bad faith, you can recover compensation for the losses that the insurance company should have originally provided for. Additionally, you can seek punitive damages to have the court punish them for their bad behavior, payment of your attorney’s fees, and triple damages, in some cases.
Contact Our Bad Faith Insurance Lawyers Today
If you suspect you are a victim of insurance bad faith, contact Caruso Law Offices today for immediate legal assistance. Our lawyers handle insurance claims regularly and can identify when insurance companies are not fulfilling their obligations correctly. We can discuss your particular situation when you reach out at (505) 407-0458.