When you purchase an insurance policy, you expect your provider to handle claims fairly. Unfortunately, insurance companies sometimes act in bad faith by wrongfully denying claims, failing to properly investigate a claim, or delaying payments. If you believe your insurer has mistreated you, you may have legal grounds to file a bad faith insurance claim. However, South Dakota law imposes a strict statute of limitations on these claims, making it essential to act within the required timeframe.
Understanding Bad Faith Insurance Claims
Bad faith insurance claims arise when an insurer unreasonably denies or mishandles a valid claim. This could include:
- Denying a claim without providing a legitimate reason
- Failing to conduct a proper investigation before rejecting a claim
- Delaying payment unnecessarily
- Offering significantly less compensation than the policy covers
- Misrepresenting policy terms to avoid paying a claim
Unlike some states, South Dakota does not recognize third-party bad faith claims, meaning an individual cannot sue another person’s insurance company for acting in bad faith. Instead, policyholders can only bring a bad faith claim against their own insurance provider if they believe their insurer has violated its duty to act fairly and in good faith.
Time Limits for Filing a Bad Faith Insurance Claim in South Dakota
South Dakota law imposes a statute of limitations on bad faith insurance claims, meaning there is a limited window for taking legal action. Generally, claimants must file within six years from the date of the alleged bad faith action. This timeframe aligns with South Dakota’s general statute of limitations for contract disputes.
Exceptions and Factors That May Affect the Deadline
While the six-year statute of limitations applies in most bad faith insurance claims, there are situations where the timeframe could change. Potential factors that may alter the deadline include:
Discovery Rule
If the policyholder was unaware of the insurer’s bad faith conduct, the statute of limitations may begin when they first discovered or reasonably should have discovered, the wrongful actions.
Fraudulent Concealment
If the insurance company intentionally conceals evidence of its misconduct, the court may extend the filing deadline to account for the delay in discovery.
Why Acting Quickly Matters
Although six years sounds like a long period, postponing your claim can put your case at risk. You may lose crucial evidence, your recollection of the event could fade, and insurance companies may use delays against you.
By obtaining legal assistance promptly, you can help ensure your case is documented accurately and submitted on time. These experienced and knowledgeable insurance dispute lawyers can assist in collecting essential evidence, negotiating with the insurance company, and, if needed, representing you in court to pursue compensation for your losses and damages.
How to Strengthen Your Bad Faith Insurance Claim
If you believe your insurance provider has acted in bad faith, consider taking these steps to build a strong case:
- Keep detailed records: Maintain copies of your insurance policy, claim documents, correspondence with the insurer, and any denial letters.
- Document all interactions: Write down the dates, times, and details of conversations with insurance representatives.
- Seek legal guidance early: Consulting with an experienced insurance dispute attorney can help you understand your rights, assess your claim, and avoid missing important deadlines.
Contact Us Today To Learn More About Bad Faith Insurance Claims
If you believe your insurance company has acted in bad faith, do not wait to take action. The legal team at Abourezk Law Firm is dedicated to holding insurers accountable and protecting policyholders from unfair treatment. We can evaluate your case, explain your legal rights, and help you pursue the compensation you deserve.
Contact us today to discuss your situation and ensure your claim is filed within South Dakota’s statute of limitations.