Taking on the intricate world of insurance claims can feel overwhelming, especially when facing the possibility of bad faith practices by insurers. That is why it’s so important for individuals in South Dakota to know what a bad faith claim really means and how to effectively prove it. This understanding can not only help protect…
Submitting an insurance claim can be challenging and sometimes intimidating. It demands careful attention to detail and strict compliance with the guidelines established by the insurance provider. Mistakes during this process can lead to several consequences, including considerable delays, outright rejections, or compensation that may fall short of your rightful expectations. These challenges can be…
If you believe that the insurance company is deliberately denying your legitimate claim, neglecting to conduct a thorough and fair investigation, or unjustly restricting your payout for their own financial advantage, it is important to understand your rights and the steps you can take to address these serious issues. In the guide below, we will…
It is not unusual for insurance companies to deny claims even when policyholders fulfill their contractual obligations. Unfortunately, some of these companies employ misleading tactics to reject legitimate claims. This unethical behavior is referred to as “insurance bad faith.” Even well-known insurance providers with substantial resources have been known to systematically deny claims or create…
Elements of Privilege In order for attorney-client privilege to apply, these elements must be met: (1.) a client; (2.) a confidential communication; (3.) a communication made for purpose of facilitating rendition of professional legal services to the client; and (4.) a communication made in one of the five relationships enumerated in S.D.C.L. § 19-13-3. State v….
In South Dakota, the eventual payment of a plaintiff’s insurance claim does not extinguish the wholly separate tort claim of bad faith. The South Dakota Supreme Court specifically embraced this principle in Champion v. U.S.F.& G. when it concluded: . . .an insurer’s violation of its duty of good faith and fair dealing constitutes a tort,…
In the guise of “medical cost containment,” insurers have established goals to deny or minimize medical claims. These goals are implemented through medical claim review procedures that are performed either by medical providers, insurance company personnel or third-party vendors. Often, the insurer will order an independent medical examination (IME) that is conducted by a medical…
In South Dakota, an insurance company acts in bad faith when it fails to give equal consideration to the interests of its insured. It is also a basic principle of insurance bad faith law is that an “insured’s interests must be given ‘equal consideration’ with those of the insurer, or as it is often expressed…
There are two different types of evidence in bad faith claims. The first type involves only the actions of the claims personnel and seeks to show that their actions were outrageous and caused damage to the plaintiff. The second type of evidence is called “institutional bad faith.” “Institutional bad faith” is a corporate philosophy, implemented…
Several South Dakota statutes prescribe insurance company responsibilities to insurance claimants. Some of these statutes are: Unfair Trade Practices The Unfair Trade Practices Act, S.D.C.L. § 58-33-67, defines unfair or deceptive insurance company practices in South Dakota. Some unfair or deceptive insurance company practices are: Admissibility In South Dakota, there is no private right of…
