Insurance Bad Faith: Insurance Disputes and Breach of Duty

New Mexico Insurance Lawyer

Insurance is a necessary security you purchase in the hopes you never have to use it. All insurance companies have a unique responsibility and duty to those whom they insure. They provide peace of mind protection for the vulnerability of individuals who make claims against you.

Insurance companies are expected to do the right thing. In cases when they do not, their insured customers are permitted to sue on basis of a tort claim and a standard breach of contract claim. While a breach of contract claim does not allow punitive or exemplary damages, a tort claim does. This means that, in many instances, damages in excess of what the policy would have otherwise covered may be awarded especially if the insurance company’s conduct was erroneous or an example of bad faith.

Bad faith manifests itself in several forms and can be the result of various parties in an insurance case. “First party” offenses occur when the insurer does not adequately investigate or process a claim on property covered by the policy. “Third party” instances occur when the person holding a policy is involved in a claim that is only partially related to the policy. In both situations, the insurance company has a duty to defend the insured, and failure to do so may constitute “bad faith”.

Examples of bad faith:

• Undue delay in handling claims
• Inadequate investigation
• Refusal to defend a lawsuit
• Threats against an insured
• Refusing to make a reasonable settlement offer
• Making unreasonable interpretations of an insurance policy
• And more

In either first or third party claims, the Department or Division of Insurance holds the insurance provider to a level of responsibility, that is documented by state-specific insurance statutes and enforced within each state.

If you or someone you love is having difficulty dealing with an insurance company after an accident or injury, it is important to contact a lawyer immediately. Your lawyer will review your case to determine if your claim was wrongfully denied. If your insurance company is suspected of engaging in “bad faith practices”, your attorney will be able to file the necessary claims against them and aggressively fight for your right to be fairly compensated.

At Brusuelas and Rane, LLC, our experienced and compassionate Albuquerque trucking accident attorneys understand the difficulties truck accident victims often endure. Let us protect your rights—and your future. Contact Albuquerque trucking accident attorney, Kimberly Brusuelas, today at 505-247-9333 for a Free Initial Consultation.