Insurance providers have a legal duty to comply with the terms of the insurance policies they issue and to act in good faith and fair dealing. If you can show the following legal elements, you may have a right to recover compensation through a Colorado insurance bad faith claim.
Existence of a Valid Insurance Policy
The first thing that you must prove in an insurance bad faith claim is that you had a valid insurance policy in place at the time of the covered loss. This means that the policy had not lapsed and was not acquired through fraud. This element is typically established by presenting a valid insurance contract between you and your insurance carrier.
Breach of the Duty of Good Faith and Fair Dealing
Colorado Revised Statutes §10-3-1113 states that insurers owe a duty of good faith and fair dealing to their policyholders. This duty requires them to act reasonably, honestly, fairly, and promptly in the handling of claims.
You must show that the insurance company violated this legal responsibility, such as by:
- Unreasonably delaying the claims process
- Denying a valid claim without a valid reason
- Offering an unreasonably low settlement for the covered loss
- Underpaying a valid claim
An experienced injury attorney can review your claim and communications with your insurance provider to determine if it violated this crucial responsibility.
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Unreasonable Denial of Benefits
You must also demonstrate that the insurance company took adverse action against you by denying your claim or withholding funds from you so that it places its own interests above your own. An unreasonable denial of benefits under Colorado Revised Statute §10-3-1115 is one that occurs without proper justification and causes the refusal or postponement of benefits.
If there were no valid grounds for the insurer to refuse to pay or delay payment, this could provide the basis for a bad faith insurance claim. For example, the insurance company may have failed to investigate the case, ignored injuries supported by medical evidence, or intentionally misinterpreted or misrepresented policy language as a ruse to create an illegitimate justification for their actions.
Damages
To succeed with your bad faith insurance claim, you must show that you suffered actual damages due to the insurance company’s bad faith actions, such as:
- Financial losses
- Medical bills
- Attorney’s fees
- Emotional distress
You must also establish the nexus between your insurance company’s bad faith conduct and the damages you sustained.
Notice of the Claim
Additionally, you must show that you gave the insurance provider proper notice of your claim within the time required under your policy.
Contact Us for a Free Case Review to Discuss Your Situation
If you suspect that your insurance company is not acting appropriately according to the terms of your insurance policy, a bad faith insurance lawyer from Dulin McQuinn Young can help. We can investigate your case, identify your legal options, and help you navigate the claims process while holding insurers to their legal duty.
Contact us today to take advantage of a free consultation.