CALIFORNIA INSURANCE BAD FAITH I PERSONAL INJURY I VERDICT & SETTLEMENTS – $2,006,000 Insurance Bad Faith: Unreasonable Failure to Disclose Policy Limits, Failure to Make Prompt & Fair Settlement
November 29, 2019
$2,006,000.00 Settlement in favor of plaintiff for Insurance Bad Faith. Specifically Amex Assurance Company, the insurance carrier,unreasonably refused to disclose policy limits when a young boy was severely injured in automobile accident and the carrier further failed to make a prompt and fair settlement when liability was clear.
What is a Bad Faith Insurance Claim?
By law an insurance company has an obligation to act in good faith and duly defend their insured. The insurance carrier breaches this obligation and is found to have acted in bad faith when they blatantly disregard the facts and act against the best interests of their insured. A bad faith insurance claim is most evident when liability is clear and the insured is exposed to a large judgment, despite this knowledge, a carries refusal to tender the insurance policy, constitutes bad faith.
Consequently, an insurance company must not find a way to evade its obligation to investigate a claim, defend its insured and/or payout for covered injuries and damages. Insurance bad faith can be found when an insurance carrier fails to disclose policy limits when the Plaintiff is severely injured. Furthermore an insurance carrier is acting in bad faith when it fails to make a prompt and fair settlement.
Case Study: $2,006,000 Insurance Bad Faith Claim: SETTLEMENT:The bad faith insurance claim arose from a motor vehicle accident when a 15-year old plaintiff suffered paraplegic injuries while riding as passenger in a car operated by a driver that was covered under an insurance policy issued by Amex Assurance Company (“AMEX”). Defendant AMEX had issued a policy for $100,000, but failed to disclose the policy limits despite the plaintiff’s request. The insurance carriers’ failure to disclose the policy limits hindered settlement negotiations and forced parties into a lengthy litigation. Plaintiff’s counsel brought forth an insurance bad faith claim against the defendant insurer alleging that they breached their duty to act in good faith by failing to disclose policy limits, failing to reach a prompt and fair settlement and otherwise forcing the plaintiff into prolonged litigation.
Additional articles discussing, insurance bad faith claims, specifically addressing: “What is Insurance Bad Faith”, “What is a Bad Faith Insurance Claim”, “Common Conduct that Gives Rise to an Insurance Bad Faith Claim” and “What Damages are available in Insurance Bad Faith claims” are linked herein: CALIFORNIA INSURANCE BAD FAITH I PERSONAL INJURY I CIVIL LITIGATION – What Is A Bad Faith Insurance Claim? https://dianalegal.com/california-insurance-bad-faith-i-personal-injury-i-civil-litigation-what-is-a-bad-faith-insurance-claim/
What Types of Damages are available in a California Bad Faith Insurance Claim?
If an insurance company is found to have acted in bad faith, they may be liable for: Compensatory Damages, Punitive Damages, and Attorney Fees. Our previous articles discussing compensatory damages and punitive damages are linked below:
If you believe your insurance company is acting in bad faith or you have suffered damages because your insurance company’s bad faith, we invite you to contact us today at 619-432-5145 for a free consultation with one of our experienced California Bad faith Insurance lawyers.