Essentials: What Every Claim Adjuster Should Know About Bad Faith

February 3, 2011

  • February 3, 2011 at 3:14 am
    Joe Longley says:
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    Section 541.060 of the Texas Insurance Code [Unfair Settlement Practices]does not require either negligence or knowing conduct to violate the Code.

    The three principlal “No-No’s” in a first-party context are:

    (1) Misrepresentation of a material fact or policy provision; Sec. 541.060(a)(1);

    (2) Failing to settle where the “insurer’s liability has become reasonably clear; Sec. 541.060(a)(2)(A), and,

    (3) Refusing to pay a claim without conducting a reasonable investigation with respest to the claim. Sec. 541.060(a)(7).

    These general prohibitions apply to insurer’s, adjusters, agents, “or other legal entity engaged in the business of insurance.”

    http://www.joelongley.com

  • February 3, 2011 at 3:56 am
    DW says:
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    A violation of any of those listed would be negligent or knowing conduct by definition.

  • February 6, 2011 at 11:43 am
    Barry Engelman says:
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    Look at the other side. I have been in the Insurance Industry for over 20 years, and I have seen plaintiff attorneys file bad faith letters against Insurance Companies becuase the plaintiff attorney does not like an offer made to them.

    When the plaintiff attorney makes an outrageous demand, is the plaintiff attorney acting in bad faith in respect to their client.

    • January 3, 2013 at 4:55 pm
      Ron says:
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      Not by any means is it bad faith. The answers always no unless you ask. The answer is simple, pay what you promise to pay in a timely manner and you wont have attorneys down your throat.

  • February 8, 2011 at 1:45 am
    Larry Getman says:
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    30 years in practice and I’ve never had a successful bad faith claims brought against a client. I don’t think anyone in my firm has ever defended a bad faith claim where the Plaintiff recovered. It’s just not a big deal in NH>

  • March 29, 2011 at 4:34 pm
    Shannon Jean Anderson says:
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    I think that I have a claim for bad faith on my insurance adjuster Mathew Rivers which works for Shelter insurnce in Nashville,TN not sure what Tennessee’s guidlines are for bad faith are but I have been lied to told wrong information.He told us do one thing and after we get that done and let him no he waits 2 months later to tells us we should have done something diffrent I have all this information in writeing threw emails he never contacts me to let me no where we stand and my claim has still not been settled its been going on since Decemnber 8,2010 when my home cought fire.Do you think I have grounds for a bad faith case.THANK YOU THE ANDERSON OF NASHVILLE,TN

  • January 3, 2013 at 4:53 pm
    Ron says:
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    With health insurance claims not being paid due to mistakes. 90% of the time the insurance companies make the mistakes. Insurance companies are the reasons why healthcare is going downhill!

    • March 5, 2013 at 4:03 pm
      AK says:
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      Idiotic statement. Wake up Ron!

  • March 5, 2013 at 4:07 pm
    AK says:
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    Insurance companies are not the catalyst. The reason healthcare is going downhill just like many other issues, is due to plaintiff attys who are always looking for a way to make money.



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