An act in good faith is an action that is in accordance with an agreement between two parties. An act is bad faith is the exact opposite. When you purchase an insurance policy you enter into an agreement with your insurance provider that you will pay a certain premium amount in exchange for services and insurance provisions on their part. When your insurance company does not abide by the terms of the agreement they are acting in bad faith and you may have a legal claim against them.
The obligations of your insurance carrier are governed by the current laws of the state. At times there are terms and conditions within an insurance policy that are not spelled out in layman’s terms. However, the courts interpret not only what the policy states, but also what the policy infers to the policyholder. The courts analyze the insurance policy carefully to be sure that the insurance company is not misrepresenting the coverage offered or refusing claims unjustly.
If an insurance policy makes claims that give the policyholder them impression that he or she would be protected under a certain set of circumstances and when those circumstances arise the insurance company refuses to pay a claim, possibly with little or no investigation into the claim, the policyholder has a valid complaint of bad faith. Insurance companies cannot make claims decisions in an effort to protect their interest and not the interests of the insured.
If you or a loved one is in need of legal assistance, call Silbowitz, Garafola, Silbowitz, Schatz & Frederick, L.L.P. at (212)-354-6800 or toll free (800)-EX-JUDGE or submit an online questionnaire. Our firm offers a free case evaluation and our dedicated team can help you understand your legal rights and obtain the compensation you are entitled to.