Good Faith, Bad Faith and Insurance Profits
Posted Tuesday, December 11, 2007 by Ed Harper
As an insurance policy holder, an insurance company is supposed to act in Good Faith. This means an insurance company has a duty to act in the following manner:
Honor your requests and assist you in resolving your claim
Pay or deny you claim within a reasonable period of time
Respond promptly to your requests
Provide notification in writing of the reasons they are not paying your claim
Bad faith insurance practices can include any of the following:
Not investigating your insurance claim
Unreasonably delaying the investigation of your claim
Not paying promptly benefits you are entitled to receive
Making an unreasonable low payment offer on your claim
Not disclosing policy limits
Not renewing your insurance policy after a claim has been filed
Terminating your insurance policy after a claim has been filed
Treating the insured as an adversary
Additionally, profits are up for insurance companies. Reports indicate that profits are at $73 billion for 2006. This is up 50% over last year and come on the backs of insured’s premium checks.
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