When Jane’s car was rear-ended in a busy Minneapolis intersection, she felt confident her insurance would handle it swiftly. However, weeks turned into months with no resolution in sight, leaving her frustrated and confused. This situation is not uncommon and often leads to one critical question: is your insurance company acting in bad faith? There are several telltale signs to watch for that suggest your insurer may not be fulfilling their obligations, or acting in bad faith. Insurance companies in Minnesota are required to follow the Minnesota Fair Claims Practices Act in their dealings with people. You can find the Act online at Minnesota Statutes 72A.201. Failure to follow the policies in the act can be bad faith, and you can report it to the Minnesota Insurance Commissioner. The Commissioner can help you, and if appropriate, fine the insurance company, and the fine money typically goes to you.
If you suspect bad faith practices, or see violations of the Minnesota Fair Claims Practices Act, it’s important to consult a legal expert for additional advice and help. Knutson + Casey, with their deep understanding of insurance law and a client-centric approach, can provide the guidance you need in such situations.
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Some signs are more subtle than others, but here’s what to look out for if you start questioning your insurance provider.
Insurance companies are expected to handle claims efficiently and within reasonable time frames. Many of these time deadlines are set forth in the MN Fair Claims Practices Act. However, when there are consistent and unexplained delays in processing a claim, it certainly raises a red flag. This behavior often manifests as the insurer repeatedly asking for more information than necessary, failing to return calls, and making it hard for you to reach them, causing unwarranted delays. These tactics not only postpone the resolution but may also place undue financial and emotional stress on the policyholder or claimant.
A clear and reasonable explanation is usually required when an insurance company denies a claim. If your claim is rejected without a comprehensive rationale or if the insurer uses ambiguous policy language as a basis for denial, this can also be a potential sign of bad faith. It’s crucial for policyholders to receive transparent communication, especially regarding denials, to understand their insurer’s decision.
When an insurance company presents a settlement offer that is starkly lower than the claim’s actual value, it often indicates bad faith. This tactic usually aims to exploit the policyholder’s need for a quick resolution, pressuring them into accepting an inadequate and unfair settlement. Understanding the true value of your claim is critical in these situations to ensure that you receive just compensation. That’s when you need to call Knutson Casey, to help you assess the value of your claim, and see if the insurance company offer is fair and reasonable.
An insurer’s fair and accurate interpretation of policy language is not just expected; it’s a legal obligation. They have a contract with you, or the policyholder that requires it too. If you find your insurance company, or the other party’s insurance company is deliberately misinterpreting the policy terms or citing non-existent clauses to deny or underpay your claim, it could be a sign of bad faith. This strategy is often employed to avoid paying the rightful claim amount. Understanding the intricacies of your policy, or the other parties’ insurance policy becomes essential to counter such tactics.
Facing any of these issues with your insurance company is a signal to seek legal advice. An attorney specializing in insurance law can critically review your policy, evaluate your insurer’s actions, and help you understand if your situation constitutes bad faith. They can also assist in negotiating with the insurer or, if necessary, pursuing legal action to protect your rights.
As a policyholder, you have rights that your insurance company is obligated to respect. Even as a claimant to someone else’s policy, you have certain legal rights. This includes the right to a prompt and fair claim process, transparent communication, and a reasonable explanation for any decisions made regarding your claim. Understanding these rights is crucial in holding insurers accountable and ensuring you receive the treatment and compensation you are entitled to.
If you believe your insurance company is not acting in good faith, it’s important to take prompt action. At Knutson + Casey, we understand the complexities and frustrations associated with insurance disputes. Our team, armed with extensive knowledge and experience in insurance law, is dedicated to ensuring your rights as a policyholder are upheld, and if there is bad faith, we can make a claim to the courts and the Minnesota Insurance Commissioner for the bad faith actions of the insurance company.
Our approach blends the experience of a large firm with the personalized care of a local Minnesota business, ensuring your case is handled with the utmost attention. We invite you to reach out for a free initial consultation to discuss your situation. Contact us at (507) 344-8888 or complete our contact form.