Bad Faith Insurance Practices

South Florida Bad Faith Insurance Law Firm

The law office of Michelle M. Niemeyer, P.A . has many years of practice experience handling cases involving bad faith insurance practices. "Bad Faith" from an insurance company usually involves a failure by the insurance company to honor the terms of the contract of insurance with a policyholder or to comply with standards established by Florida law. Florida Statute Section 624.155 provides for civil remedies for policyholders who become the victims of bad faith insurance practices. Because bad faith practices are not always obvious even to most attorneys, you need an attorney who is experienced in insurance law and can recognize the signs of a valid bad faith insurance case.

Bad Faith Insurance Practices

There are several unlawful or unethical practices an insurance company might engage in that can lead to legitimate charges of Bad Faith Practices under Florida statute section 624.155. Any of these, or similar practices, can result in a client seeking compensation for damages. Some bad faith insurance or unfair claim settlement practices include, but are not limited to:

  • Attempting to settle claims on the basis of an application, when serving as a binder or intended to become a part of the policy, or any other material document which was altered without notice to, or knowledge or consent of, the insured
  • A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy; or
  • Committing or performing with such frequency as to indicate a general business practice any of the following:
    • Failing to adopt and implement standards for the proper investigation of claims;
    • Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;
    • Failing to acknowledge and act promptly upon communications with respect to claims;
    • Denying claims without conducting reasonable investigations based upon available information;
  • Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed;
  • Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement;
  • Failing to promptly notify the insured of any additional information necessary for the processing of a claim; or
  • Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
  • Failure to maintain complaint-handling procedures. Failure of any person to maintain a complete record of all the complaints received since the date of the last examination. For purposes of this paragraph, "complaint" means any written communication primarily expressing a grievance.

Contact the bad faith insurance litigation office of Michelle M. Niemeyer, P.A., to schedule a consultation about your dispute.