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 discuss what you need to understand about bad faith insurance claims in South Dakota and the steps you can take to protect your interests and hold your insurance provider accountable.
What Is a Bad Faith Insurance Claim?
At its core, a bad faith insurance claim occurs when an insurance company fails to fulfill its contractual obligations to the policyholder in a reasonable and just manner. Such breaches can manifest in various forms, including unjustified denial of a valid claim, neglecting to conduct a thorough investigation into the circumstances surrounding the claim, or engaging in undue delays in processing or disbursing payments. Additionally, insurers may resort to deceptive practices, such as misrepresenting policy provisions or failing to provide timely communication regarding claim status, further exacerbating the difficulties faced by policyholders.
Pursuing a Legal Claim in South Dakota for Bad Faith Insurance
In South Dakota, the legal system recognizes bad faith as an intentional tort related to insurance claims. This classification means an insurer can be held responsible if it knowingly engages in wrongdoing while processing or paying policy benefits.
To successfully demonstrate a bad faith claim, the insured party must establish two essential elements:
- They must show that the insurer had no reasonable basis for denying policy benefits or failing to meet its contractual duties. This involves proving that the insurer’s reasons for denial were not grounded in the facts, applicable laws, or the insurance contract’s terms.
- The insured must present evidence that the insurer knew about or recklessly disregard the lack of a reasonable basis for denial. This indicates that the insurer either knew it was acting unjustly or completely disregarded the adverse effects its actions could have on the insured.
How Can You Prove the Insurance Provider Acted in Bad Faith?
To establish evidence of bad faith insurance practices, one of the most effective strategies is to document all interactions with your insurance provider. This includes keeping a detailed record of emails, letters, voicemails, and any other communications that pertain to your case. This documentation can be critical evidence that a South Dakota insurance attorney may leverage to demonstrate that your insurance provider failed to adhere to their established policies and procedures.
Furthermore, this documentation can reveal instances where your provider may have unnecessarily prolonged the “investigation” of your claim or, more alarmingly, deliberately caused delays that adversely affected your claim payout. This evidence can also underscore a pattern of conduct that undermines good faith negotiations.
Moreover, keeping copies of all medical bills and detailed records of your treatments or repairs related to your original insurance claim is crucial. A skilled South Dakota insurance attorney can use these documents to challenge any inadequate settlement offers from your insurance company. By providing documented evidence of your medical expenses and related costs, these legal professionals may be able to effectively argue for the actual value of your claim in court, ensuring you receive the compensation you rightly deserve.
To Learn More About Bad Faith Insurance Claims, Contact Abourezk Law Today
If your insurance provider used bad-faith tactics to cheat you out of the compensation you deserve, contact Abourezk Law today for a free consultation. Let our experienced insurance attorneys help you pursue the justice you may be entitled to.