Providence Bad Faith Insurance Lawyer
What do Providence Insurance Claims Attorneys do?
If you have been offered an unfair settlement or had your claim denied by your insurance provider, you may feel helpless to do anything to fight back. A Providence bad faith insurance lawyer knows how to deal with these situations and can help make sure that you are not being taken advantage of by your insurance company.
Providence bad faith insurance attorneys handle cases including:
• Insurance Litigation
• Disability Insurance
• Life Insurance Policies
• Fire Insurance Policy Litigation
• Health Insurance Policy Claims
• Automobile Insurance Claims
• Uninsured Motorist Claims
• Property and Casualty Insurance Coverage
• Homeowners Insurance Litigation
• Accidental Death Policies
• Bad Faith Insurance Claims
• Uninsured - Underinsured Coverage
What is Bad Faith Insurance?
There are a variety of ways in which an insurance subscriber can be mistreated by the insurance company with whom they hold a policy. A claim may be wrongfully rejected, the company make make unreasonably slow payment, the investigation may be improper, or the company may make only partial payment. When any of these things occurs, the insurance company has acted in bad faith. This is a nationwide phenomenon and happens to Providence, Rhode Island insurance subscribers all the time. The bottom line is that insurance companies are in the business of making money. Their goal is to accept premiums while paying out on as few claims as possible. Their marketing is designed to induce consumers to buy insurance by selling the notion that the insured will be in good hands, will be taken care of by a financially secure company, and will be dealt with fairly in their time of need. Unfortunately, this is not the case most of the time, and families across the Greater Providence area end up suffering financial hardship as a result. Call a Providence bad faith insurance lawyer to help you fight back against the insurance companies!
Providence, Rhode Island Bad Faith Insurance Law & Providence Breach of the Duty of Good Faith and Fair Dealing Lawyer
In Rhode Island, an insurer has the responsibility to deal with its insured with a high standard of care. Insurance contracts imply a fiduciary duty flowing from the insurer to the insured. This means that the insurance company must treat the policyholder with a duty of care and loyalty by dealing fairly, honestly, and in good faith at all times. If the insurance company breaches its contract with the policyholder, the policyholder may have a cause of action, which, in Rhode Island, is called a "First Party Bad Faith" action. First Party Bad Faith Litigation includes actions against insurance companies where the company has unjustifiably:
- Failed to compensate the insured for a loss covered under the policy
- Unreasonably delayed making payments
- Failed to adequately pay a claim
- Conducted an improper investigation
Examples of first party bad faith insurance claims include, but are not limited to, automobile accidents and medical insurance. If you are a Providence area policyholder and your insurance company has acted in bad faith with regard to your policy benefits, please do not hesitate to contact a Providence insurance claim denial lawyer today to discuss your case.
What protections does Rhode Island law provide against abuses by insurance companies?
The Rhode Island Insurance Code requires insurance companies--regardless of the type of coverage provided--to meet certain minimum standards of good faith conduct in their dealings with policyholders. For example, Rhode Island law allows insurance companies only 30 days from the date they receive a claim to send the policyholder written acknowledgment of having received the claim, begin investigating the claim, and request all necessary documentation to begin processing the claim. Furthermore, under Rhode Island law any violation of the insurance code is considered an unfair settlement Practice. Insurance companies must follow these rules:
§ 27-9.1-4 "Unfair claims practices" defined. – (a) Any of the following acts by an insurer, if committed in violation of § 27-9.1-3, constitutes an unfair claims practice:
(1) Misrepresenting to claimants and insured relevant facts or policy provisions relating to coverage at issue;
(2) Failing to acknowledge and act with reasonable promptness upon pertinent communications with respect to claims arising under its policies;
(3) Failing to adopt and implement reasonable standards for the prompt investigation and settlement of claims arising under its policies;
(4) Not attempting in good faith to effectuate prompt, fair, and equitable settlement of claims submitted in which liability has become reasonably clear;
(5) Compelling insured, beneficiaries, or claimants to institute suits to recover amounts due under its policies by offering substantially less than the amounts ultimately recovered in suits brought by them;
(6) Refusing to pay claims without conducting a reasonable investigation;
(7) Failing to affirm or deny coverage of claims within a reasonable time after having completed its investigation related to the claim or claims;
(8) Attempting to settle or settling claims for less than the amount that a reasonable person would believe the insured or beneficiary was entitled by reference to written or printed advertising material accompanying or made part of an application;
(9) Attempting to settle or settling claims on the basis of an application that was materially altered without notice to, or knowledge or consent of, the insured;
(10) Making claims payments to an insured or beneficiary without indicating the coverage under which each payment is being made;
(11) Unreasonably delaying the investigation or payment of claims by requiring both a formal proof of loss form and subsequent verification that would result in duplication of information and verification appearing in the formal proof of loss form;
(12) Failing in the case of claims denials or offers of compromise settlement to promptly provide a reasonable and accurate explanation of the basis of those actions;
(13) Failing to provide forms necessary to present claims within ten (10) calendar days of a request with reasonable explanations regarding their use;
(14) Failing to adopt and implement reasonable standards to assure that the repairs of a repairer owned by or required to be used by the insurer are performed in a workmanlike manner;
(15) Misleading a claimant as to the applicable statute of limitations;
(16) Failing to respond to a claim within thirty (30) days, unless the insured shall agree to a longer period;
(17) Engaging in any act or practice of intimidation, coercion, threat or misrepresentation of consumers rights, for or against any insured person, claimant, or entity to use a particular rental car company for motor vehicle replacement services or products; provided, however, nothing shall prohibit any insurance company, agent or adjuster from providing to such insured person, claimant or entity the names of a rental car company with which arrangements have been made with respect to motor vehicle replacement services; provided, that the rental car company is licensed pursuant to Rhode Island general laws § 31-5-33; or
(18) Refusing to honor a "direction to pay" executed by an insured, claimant, indicating that the insured or claimant, wishes to have the insurance company directly pay his or her motor vehicle replacement vehicle rental benefit to the rental car company of the consumer's choice; provided, that the rental car company is licensed pursuant to Rhode Island general laws § 31-5-33. Nothing in this section shall be construed to prevent the insurance company's ability to question or challenge the amount charged, in accordance with its policy provisions, and the requirements of the department of business regulation;
(19) Modifying any published manual (i.e. motors, mitchells, or any automated appraisal system) relating to auto body repair without prior agreement between the parties;
(20) Failing to use a manual or system in its entirety in the appraisal of a motor vehicle;
(21) Refusing to compensate an auto body shop for documented charges as identified through industry recognized software programs or systems for paint and refinishing materials in auto body repair claims; and/or
(22) Failing to comply with the requirements of Rhode Island General Laws § 31-47-12.1.
(23) Failure to have an appraisal performed by a licensed appraiser where the motor vehicle has sustained damage estimated to exceed two thousand five hundred dollars ($2,500). Said licensed appraiser referred to herein must be unaffiliated with the repair facility repairing the subject motor vehicle.
(24) Failure to perform a supplemental appraisal inspection of a vehicle within four (4) business days after a request is received from an auto body repair shop.
(b) Nothing contained in subsections 27-9.1-4(a)(19), (20), & (21) of this chapter shall be construed to interfere with an auto body repair facility's contract with an insurance company.
(2) If an insurance company and auto body repair facility have contracted under a direct repair program or any similar program thereto the provisions of subsections 27-9.1-4(a)(19), (20) & (21) shall not apply.
(3) If the insured or claimant elects to have the vehicle repaired at a shop of his or her choice, the insurer shall not limit or discount the reasonable repair costs based upon the charges that would have been incurred had the vehicle been repaired by the insurer's chosen shop(s).
What can a Providence, RI Bad Faith Insurance Lawyer do for you?
As noted, Providence insurance attorneys who handle bad faith insurance cases represent policyholders in claims against insurance companies that have refused to pay a claim the insurer may be legally obligated to pay, or have denied an insured's claim without conducting a proper investigation. A Providence insurance lawyer can help you get the following legal remedies and damages if the insurance company fails to pay the insured's claim without reasonable cause within sixty days after receiving the demand for payment:
1. The money the insurance company owes under the policy;
2. A statutory penalty up to fifty percent of the amount of the claim; and
3. Reasonable attorney fees.
The Bad Faith Insurance Dilemma
Over the past few years, insurance companies have become bigger, wealthier and more powerful than ever. They dominate our healthcare system and, in some cases, even impact where we choose to live. One insurance company advertises that it has over $700 billion in assets. Insurance companies obtain this extraordinary wealth by selling policies and collecting premiums, while minimizing payment of claims.
This frequently results in the wrongful denial of claims and bad faith dealings with policyholders, including practices such as failing to respond to claims, and searching for technicalities in the policy that give the insurance company a loophole through which they may avoid making payment. Sometimes insurance companies even affirmatively breach contracts or intentionally abuse their power by bullying policyholders into taking what the insurance company is willing to pay as opposed to the value of a fair settlement. This is something that Providence insurance lawyers are all too familiar with, and they can advocate on your behalf if you find yourself in a legal battle with your insurance company. Metro Providence injury victims, including those in Providence County and beyond, may find themselves facing off with their insurance companies when they are rightfully entitled to benefits under their policy. Providence bad faith insurance attorneys are available to help in these situations.
Providence Insurance Lawyers encounter bad faith insurer practices in the following areas:
Disability Insurance - Unum Provident, for example, is notorious for failing to pay claims or raising you one silly little "point" to stall paying you your disability money when you need it the most. There are certain notice requirements that must be met and there are many medical conditions that are built into the contracts that exclude some coverage.
Rhode Island insurance claims attorneys know the technical terms of contracts, and therefore have the tools to challenge an insurance company's denial of a claim. This can optimize a policyholder's chances of recovering money. If you have questions about your disability policy, contact one of the Providence disability insurance attorneys listed on this page today.
Life Insurance Policies - Providence bad faith insurance lawyers deal with many different types of life insurance policies, such as:
(a) Employer provided life insurance policies through group health insurance plans;
(b) Term policies that have no cash value, but which serve as life insurance, as opposed to investment
vehicles. Insurers rarely fail to pay these claims;
(c) "Whole Life" policies, which have cash value.
Like other insurance benefits, life insurance benefits can be wrongfully denied. First, there can be issues as to whether adequate notice was given to the life insurance company. Second, suicide may be excluded, and there are some forms of employment and recreation that may not be covered by the policy.
Insurance companies, without any reasonable basis, may also simply cancel a policy when a policyholder is diagnosed with an extreme illness or terminal disease. This happens even after the insured has faithfully paid their premiums to the company. Often, the insurance company will chock this up to a "clerical error," as justification for canceling the policy. In truth, such practices are unconscionable and immoral, bad faith behavior on the part of the insurance companies. Similarly, when an elderly person loses their life insurance coverage, they often cannot replace it in an affordable way. Insurance agents may sign a policy cancellation either directly or indirectly through another party and allow the policy equity to be sent to someone else. If the insurance policyholder has not been receiving yearly statements from the insurance company, he or she may not even know that there is cash value in the policy and may not even know the policy has been canceled until it is too late.
Don't let your insurance company mistreat you. If your life insurance policy has been wrongfully canceled or if you are having difficulty collecting payment on a life insurance claim, please contact a Providence life insurance policy lawyer today.
Health Insurance Policy Claims - Prior to the adoption of the Obama Health Care Package, denial of health insurance benefits was commonplace in the industry. The insurer simply denied the claim, stating that it was "unreasonable." They even employed "throw down" doctors to support their opinion that the procedure or treatment was unreasonable. The Obama Health Care Plan strengthened and expanded your legal rights; however, you still need a qualified Providence insurance attorney to advise you of those rights and argue on your behalf against the powerful insurance companies.
Auto Insurance Claims
(1) Uninsured - Underinsured Clause Denials: If you have an uninsured or underinsured clause in your auto insurance policy, the insurance company has a duty to compensate you for any loss you have suffered, which is not covered by the insurance policy of the person or entity causing your injury or damage. Insurance companies tend to fight these underinsured and uninsured claims aggressively. In settling the underlying case, it is critical that you understand the implications and consequences of how the settlement may affect the underinsured or uninsured claim against your insurance company. In 2009, Rhode Island law was amended in regards to uninsured / underinsured motorist law. This recent amendment allows an insured the option of purchasing, for an additional premium, coverage that will be added on top of their liability coverage. For example, imagine you are involved in a car accident and suffer $100,000 worth of damages. Now assume the person causing your damages has $100,000 worth of insurance and that you purchased $100,000 worth of uninsured-underinsured insurance coverage from your insurance company. Before the 2009 amendment, your recovery would be limited to the $100,000 owed by the at-fault driver's insurance company. Now, however, you have the option to stack these policies on top of one another and recover $200,000.
(2) Property Damage Claims: Imagine if you saved $100.00 a thousand times each day. What would that equal? It would equal a lot of money. That is what insurers are doing when they make low-ball offers to their policyholders to settle their property damage claims. This is the type of behavior one can expect from an insurance company, but it is not the treatment they pay for when they consistently pay their insurance premiums. The company is not looking out for your best interest, as required by the company's fiduciary duty to policyholders under Rhode Island law. Rather, they are purely focused on how much money they can make and they do this by fighting you tooth and nail for every cent you are entitled to under your policy. Fight the insurance companies back by hiring an experienced Providence insurance claims attorney to represent you in your property damage claim.
Bad Faith and Insurance Denied Lawyers Serve Metro Providence and Surrounding North Rhode Island Communities
Serving clients throughout Eastern New Hampshire, including Allenton, Ashaway, Attleboro, Bayside, Boston, Bradford, Cambridge, Chepachet, Cranston, Cumberland Hill, East Greenwich, Exeter, Fort Ninigret, Greenville, Harrisville, Hartford, Hope Valley, Kingston, Misquamicut, New Haven, Nooseneck, North Scituate, North Swansea, Pawtucket, Perryville, Providence, Rumford, Shannock, Springfield, Usquepaug, Valley Falls, Wakefield, Warwick, Washington, West Warwick, Westerly, Wood River Junction, Woonsocket, Worcestor, areas in the vicinity of Theodore Francis Green Memorial State Airport, and other communities in Providence County.
Contact one of the qualified Providence insurance attorneys listed on this page today for a FREE CONSULTATION.