In Texas, insurance providers have an obligation to their policyholders to ensure that claims are quickly adjusted and settled in a way that is fair and agreeable. However, when an insurance company breaches these duties, it can be held liable to the policyholder for damages, penalties, and even attorney’s fees that go beyond the scope of the insurance policy.
Due to the inherent advantage that insurance companies have over their policyholders, they are closely regulated. There are cases where these companies take advantage of their insureds, who depend on the coverage they paid for in the event of an emergency or accident.
If you have reason to believe that your insurance company acted in bad faith, you should consult with a Houston insurance attorney at West Loop Law and the Law Office of Nhan Nguyen, MD, JD.
What Is Bad Faith Insurance in Texas?
There are numerous examples that may constitute bad faith on part of an insurance company in Texas, including the following:
- Failure to recognize receipt of a claim
- Unreasonable delays without justification
- Attempting to settle a claim for less than what would be reasonably fair
- Failure to conduct a swift and comprehensive investigation of a claim
- Failure to notify a policyholder of changes to the policy that would impact a claim
- Making payments without explaining their intention, meaning
- Failure to offer a settlement in a timely manner when liability is evident
- Requiring physicians or policyholders to submit multiple forms containing identical information and using failure to submit as cause for denial
- Failure to clarify an arbitration appeals policy
- Requesting unrelated documentation
- Failure to disclose why a claim was denied or a compromise offer was made
- Withholding information related to a claim
- Deliberately misrepresenting or distorting claims information
- Asserting wrongful accusations of arson or other impropriety on the part of the insured party
- Encouraging a claimant to not hire a lawyer or attorney
- Treating policyholders as an adversary
- Increasing premiums as a result of a claim in which the insured was not at fault
- Using coercive and offensive tactics to discourage claims
- Misrepresenting the value of a claim
If you believe that your insurance company has engaged in any of these activities, you should contact a personal injury lawyer in Houston TX immediately.
Proving a Bad Faith Insurance Claim in Houston
In order to prove a bad faith claim in Houston, it must be understood that the burden of proof is on the plaintiff. That means you and your attorney are required to establish how the circumstances of your case meet the requirements of a bad faith claim.
In most cases, bad faith requires the plaintiff to show that the insurance company did not just make an error. It must be determined that the company engaged in purposeful or grossly negligent conduct intended to harm the insured party.
Damages in a Texas Bad Faith Insurance Lawsuit
If your bad faith claim is successful, you can potentially seek compensation for the following damages:
- Up to three times the amount the insurance company would have paid if it had processed your claim properly
- Statutory penalties in the form of interest for delayed payments
- Attorneys’ fees, interest, and court costs
- Punitive damages to punish the insurance company for its grossly negligent behavior
Cases involving bad faith practices can become complicated quickly, and victims need to ensure that their legal rights are protected after being taken advantage of by their insurance provider.
Houston Bad Faith Insurance Attorney
The team of Houston personal injury lawyers at West Loop Law and the Law Office of Nhan Nguyen, MD, JD is here to fight for your deserved compensation. Nhan Nguyen, MD, JD, Nader Rabie, JD, and the rest of our legal team have over 14 years of combined experience in the law, and we have the resources to pursue all possible avenues to ensure that you recover the compensation you need to make a full recovery.
If you have been taken advantage of by your insurance company, contact West Loop Law and the Law Office of Nhan Nguyen, MD, JD today at (713) 840-7200.
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