The insurance company’s obligation to act fairly and quickly

Insurance companies have an obligation to act fairly and quickly to resolve policyholders’ insurance claims. This is commonly referred to as the duty of good faith and fair dealing.  You need the funds to replace or repair your property and your insurance company may be the only one that can help.

It would be easy for insurance companies to simply deny your claim just because they felt like it. Thankfully, the court system does not allow them to do this because insurance companies cannot act in “bad faith.”

Florida Bad Faith Insurance Law

You can define good faith by looking at the definition of bad faith. Under Florida law, an insurance company cannot engage in any of the following practices:

  • False advertising or misleading advertising when selling insurance policies
  • Making misleading statements or otherwise misrepresenting what an insurance policy covers, benefits of the policy, or conditions of the policy
  • Knowingly make any false statements, coercion, or intimidation
  • Unfairly discriminating against insureds or potential insureds
  • Refusal to renew a policy or refuse to pay a claim based on claims for medical or psychological treatment related to abuse
  • Failing to promptly provide a written rationale or explanation for denial of coverage
  •  Failing to pay undisputed amounts promptly after notification (within 90 days for first party insurance plans)

Bad faith includes a variety of other practices as well. If you have an interaction with an insurance company, and you end up wondering if the insurance company is actually allowed to do that—you may have a bad faith situation on your hands.

Obligation to Act Fairly and Quickly

The law recognizes that the insurance company often has the upper hand when it comes to insurance disputes. That is why it imposes good faith requirements. The legislature and the courts realize that you need the insurance money that you have been promised, and you likely need it quickly.

If you think your insurance company or the other party’s insurance company is not acting in good faith and is engaging in bad faith insurance practices, you may have a legal claim. Use our contact form to schedule a case evaluation form with an experienced insurance dispute lawyer.

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John Salas