How To Fight Back: Exploring Your Legal Options After Insurance Bad Faith In Tacoma, Washington

What you will learn in this article:

• The definition of bad faith insurance.
• Your rights as a policyholder when subjected to bad faith by your insurance.
• The type of evidence required to prove insurance bad faith.

How Do You Explain Bad Faith Insurance Claims To Someone Who Has Never Heard Of One Before?

When you take out insurance, you hope it will cover your liabilities when the unexpected happens. But that doesn’t always turn out to be the case. Sometimes, it’s because of something you overlooked when taking out the policy. But at other times, it’s a case of bad faith insurance.

Bad faith insurance claims occur when an insurance company fails to uphold its obligations to policyholders. For example:

Imagine you have homeowners’ insurance, and your home is damaged from a fire. You file a claim expecting the insurance company to help cover your damages. However, instead of doing their job—like investigating the claim fairly and paying what’s owed—they might delay payment, deny a valid claim without a good reason, or offer much less than what’s fair.

In essence, bad faith refers to the insurance company acting dishonestly or unfairly, breaking their promise to provide the support you paid for. This can leave you in a tough spot and dealing with unimaginable financial losses.

What Are My Rights If I Believe My Insurance Company Is Acting In Bad Faith?

The law anticipates that there will be some bad eggs and has provisions to protect consumers against insurance companies acting in bad faith. Even against the big companies, you still have rights and several options available to you if you feel your insurance company is acting in bad faith.

• Review Your Policy
  Begin by reviewing your insurance policy to understand your coverage and the insurer’s obligations. This can help you determine whether you need to take any steps to comply with your obligations under the policy.
• File a Complaint
  If, after reviewing the policy, you find that you have fulfilled all your obligations and your claim is in order, you can file a complaint with your state’s insurance department. They can investigate the issue and may be able to help resolve the dispute.
• Request a Written Explanation
  Ask your insurer for a written explanation of any claim denials or delays. This can provide clarity and may highlight their bad faith
• File a Lawsuit and Claim Damages
  If you can prove bad faith, you may be entitled to damages beyond what the insurance policy covers, including compensation for emotional distress and legal fees. In this case, you should proceed to file a lawsuit and claim damages.

Consulting an attorney experienced in insurance law can help you understand your rights and determine the best course of action. They can assist you in filing a bad faith lawsuit if necessary.

Attorney Eric Chavez is a seasoned lawyer based in Tacoma, WA. With expansive experience as an insurance adjuster and as an attorney, he is prepared to assist you in filing bad faith insurance claims so that you can receive the compensation duly owed to you by your insurance company, among other damages.

Still have questions? Ready to get started? Contact Axion Law Group today to schedule an initial consultation.

What Sort Of Evidence Can I Use To Prove Bad Faith In Washington Courts?

After determining that your insurance company is acting in bad faith and you would like to proceed with a legal claim, you need to start gathering evidence. Knowing what you need beforehand can ensure you ask the insurance company the right questions and get the proper paperwork to support your claim of bad faith.

To prove bad faith in Washington, you’ll need to gather evidence that demonstrates the insurance company acted unfairly or dishonestly. Here are some examples:

• Communication Records
  You will need to provide a detailed log of all interactions with the insurance company, including emails, letters, and notes from phone calls. Document dates, times, and the names of representatives.
• Policy Documents
  Have copies of your insurance policy and any amendments. Highlight the specific obligations of the insurer that you believe were violated.
• Claim Documentation
  Collect all documents related to your claim, such as your initial claim submission, any additional information you provided, and responses from the insurer.
• Denial Letters
  If your claim was denied, save any letters or communications outlining the reasons for the denial. Look for inconsistencies or lack of legitimate justification.

Additionally, your attorney can help you seek out expert testimony, comparative insurance claims, internal communications within the insurance company, and witness statements from those familiar with your interactions with adjusters.

What Laws In Washington Protect Me Against Insurance Bad Faith?

The state of Washington has various laws that protect you against insurance bad faith, such as the following:

• Washington Insurance Fair Conduct Act (IFCA)
  RCW 48.30.015 gives policyholders the right to sue their insurance company if a claim for coverage or payment of benefits is unreasonably denied. Policyholders can recover their actual damages in addition to reasonable attorneys’ fees and litigation costs.
  In addition, treble damages up to three times the amount of actual damages can be awarded if the insurance company is found to have violated any of Washington’s claim handling regulations WAC 284-30-330, WAC 284-30-350, WAC 284-30-360, WAC 284-30-370, or WAC 284-30-380.
• Common Law Principles
  Washington courts recognize the duty of good faith and fair dealing that insurers owe to their policyholders. This is based on common law principles and can be a basis for a bad faith claim.
• Washington Consumer Protection Act (CPA)
  RCW 19.86.090 prohibits unfair or deceptive acts in trade or commerce. If an insurance company engages in deceptive practices, you may be able to pursue a claim under this law. Damages awardable under the CPA include actual damages incurred in addition to litigation and reasonable attorneys’ fees. The court has the discretion to increase the award of damages to triple the amount up to $25,000.

These laws provide a framework for addressing bad faith actions by insurers and give policyholders avenues for recourse if they believe their rights have been violated.

If you think you have a claim, consulting with an attorney experienced in insurance bad faith law can help you navigate these protections and determine the best strategy to pursue.

Still Have Questions? Ready To Get Started?

For more information on How To Fight Back, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (253) 339-8500 today.