Has Your Insurance Company Fulfilled Its Good Faith Obligation to You?

You might have followed all the rules. You paid your premiums on time and have done everything else your insurance company asked you to do. But now, they are refusing to pay your claim or making you jump through hoops just to get the coverage you paid for. However, insurance companies have a duty to fulfill their good faith obligation to clients like you. Your best course of action now might be to talk to an experienced Pennsylvania attorney, but this article can help you better understand your rights.

The Insurance Company – Insured Relationship

When you sign up with an insurance company, you’re creating a bond. The company takes a calculated risk that they will not lose money on your insurance, while you want the policy to cover your losses. The policy itself is a contract between the policyholder (you) and the insurer. Each of you has obligations and rights based on that contract.

Let’s say you have a loss that you feel is covered by the insurance policy. You make a claim and wait for your money. However, the insurance company drags its feet and keeps asking for more information until one day you get the bad news:  they have rejected your claim. Under Pennsylvania law, you may have recourse against the insurer.

Pennsylvania Law and Your Insurance Company

Insurance companies have a good faith obligation that should govern their dealings with you. Accordingly, your insurer should investigate your claim quickly and thoroughly, then pay any valid claims. It’s considered ‘bad faith’ when insurance companies fail to fulfill their good faith obligations.

If you feel your insurance company acted in bad faith, talk to a lawyer as soon as possible. Under 42 Pa. C.S. § 8371, you might be able to recover:

  • Interest on the money the insurance company should have paid to you;
  • Punitive damages; and
  • Attorneys’ fees and court costs.

Obviously, it is better for the insurance company to just pay claims under their good faith obligation to you. But if they don’t, you do have other options to pursue.

What’s Next?

An experienced litigation attorney may provide the necessary expertise to achieve success in any legal matter. The attorneys at Powell Law carry on the work of a law firm that spans generations and has represented thousands of Pennsylvanians over a period of 115 years. At Powell Law, it is our goal to protect and assert our clients’ rights effectively in any matter, including those involving personal injury.

Our decades of experience make Powell Law the clear and obvious choice for representation in personal injury cases in Scranton/Wilkes-Barre and surrounding areas. Contact Powell Law at (570) 961-0777. The consultation is FREE, and you don’t pay unless we win!

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