You know how we keep insurers honest without suing them? Its called the state Department of Insurance. If an insurer is giving you the shaft, report them.
Well CJ you are half right. The law should allow bad insurance companies to be sued for bad faith. Let’s face it some companies will do everything in their power to avoid claims. On the other hand the insurer should be allow to place these cost into their pricing models. Some suits are unavoidable and the result of a mistake. If the lawsuits don’t drive them out of business maybe their high rates will.
Some earlier comments treated this as a joke, thanks CJ and Rocket for talking sense. As an expert in 1,600+ insurance lawsuits, in 24 states. I see all of the nasty, intentional things insurers use to beat down claimants, even there own policyholders. The only thing that puts any fear in them is the bad faith laws in some (though not enough) states. Those who don’t agree with such lawsuits against insurers simply are unaware of how badly they act in order to save money, and make bigger profits.
I’m sorry, but I deal with frivolous claims all day long. Trial Courts award punitive and then Appellate Courts reverse punitive. 90% of this just feeds the attorneys. It’s madness.
I will bet you that there are a LOT more insureds who are “out to screw the insurance companies” then there are insurers that screw over insureds. For all independant agents out there, how many times have you had an insured try and “pull a fast one on you” by lying about household members, business use, tickets/accidents etc?
So before you go blame “the greedy insurance companies” think about how many times THEY get screwed over by dishonest insureds. If all insureds were honest, the claims process would be so much faster and easier, but since there are way too many people that will lie and cheat the system, insurers have to do have all these procedures and sometimes deny claims.
Wow, fingers pointed in every direction! Insureds, companies, lawyers & regulators all make mistakes and everyone is looking out for number one. I think the point of the article is to highlight the fact most people understand punitive damages only get charged back to the other policy holders.
Regulators are weak in most states and proving Bad Faith is very difficult to do, so if you think regulation will handle this issue you are wrong.
Frivolous claims and denial of suspected frivolous claims as well as mistakes are a part of the business we have chosen for ourselves.
Small carriers with poor results fighting for survival, in my opinion, are more likely to push the envelope with 1st party claims denials. Should we throw the book at them in court? How far do we go? Tough questions.
You can’t get bad faith against insurers by a regulation enacted by the Dept. of Insurance – it has to be by statute, passed by the legislature. And, there are already lots of laws and regs aimed at dishonest insureds, as well as clauses in every insurance policy on misrepresentation and fraud, in the purchase of the policy, and in the submission of a claim. Please do understand that the deck is stacked in favor of the insurance companies, and against policyholders. Bad faith laws and regs tend to even the stacks.
When was the last time an insured was slammed with a hefty fine for misrepresentation? Or even have anything negitive happen because they lied on their app then have their claim denied?
If our socitiy wasn’t so litgious, I might be a little more empathetic, but I see far too many insureds pulling fast ones then insurers violating insurance law.
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You know how we keep insurers honest without suing them? Its called the state Department of Insurance. If an insurer is giving you the shaft, report them.
Well CJ you are half right. The law should allow bad insurance companies to be sued for bad faith. Let’s face it some companies will do everything in their power to avoid claims. On the other hand the insurer should be allow to place these cost into their pricing models. Some suits are unavoidable and the result of a mistake. If the lawsuits don’t drive them out of business maybe their high rates will.
Some earlier comments treated this as a joke, thanks CJ and Rocket for talking sense. As an expert in 1,600+ insurance lawsuits, in 24 states. I see all of the nasty, intentional things insurers use to beat down claimants, even there own policyholders. The only thing that puts any fear in them is the bad faith laws in some (though not enough) states. Those who don’t agree with such lawsuits against insurers simply are unaware of how badly they act in order to save money, and make bigger profits.
I’m sorry, but I deal with frivolous claims all day long. Trial Courts award punitive and then Appellate Courts reverse punitive. 90% of this just feeds the attorneys. It’s madness.
I will bet you that there are a LOT more insureds who are “out to screw the insurance companies” then there are insurers that screw over insureds. For all independant agents out there, how many times have you had an insured try and “pull a fast one on you” by lying about household members, business use, tickets/accidents etc?
So before you go blame “the greedy insurance companies” think about how many times THEY get screwed over by dishonest insureds. If all insureds were honest, the claims process would be so much faster and easier, but since there are way too many people that will lie and cheat the system, insurers have to do have all these procedures and sometimes deny claims.
Wow, fingers pointed in every direction! Insureds, companies, lawyers & regulators all make mistakes and everyone is looking out for number one. I think the point of the article is to highlight the fact most people understand punitive damages only get charged back to the other policy holders.
Regulators are weak in most states and proving Bad Faith is very difficult to do, so if you think regulation will handle this issue you are wrong.
Frivolous claims and denial of suspected frivolous claims as well as mistakes are a part of the business we have chosen for ourselves.
Small carriers with poor results fighting for survival, in my opinion, are more likely to push the envelope with 1st party claims denials. Should we throw the book at them in court? How far do we go? Tough questions.
You can’t get bad faith against insurers by a regulation enacted by the Dept. of Insurance – it has to be by statute, passed by the legislature. And, there are already lots of laws and regs aimed at dishonest insureds, as well as clauses in every insurance policy on misrepresentation and fraud, in the purchase of the policy, and in the submission of a claim. Please do understand that the deck is stacked in favor of the insurance companies, and against policyholders. Bad faith laws and regs tend to even the stacks.
When was the last time an insured was slammed with a hefty fine for misrepresentation? Or even have anything negitive happen because they lied on their app then have their claim denied?
If our socitiy wasn’t so litgious, I might be a little more empathetic, but I see far too many insureds pulling fast ones then insurers violating insurance law.