When you purchased your various insurance policies, you understood that you would be able to file a claim with the company if you ever experienced a covered loss. This agreement between you and your insurance company was written into a contract that is relatively straightforward. Even so, some insurance companies refuse to pay legitimate claims even though they cannot cite a lawful reason for denying the claim. Insurance companies perform these nefarious actions because they are aware that many of their policyholders do not know that they have recourse against them under state insurance laws. Insurance Law Explained Insurance law requires that insurance companies pay legitimate claims in a prompt manner. If they do not, this practice is called “bad faith insurance” or “insurance fraud.” Specifically, an insurance company that is operating in bad faith is deliberately delaying or denying a claim or offering a much lower settlement than the claimant deserves. However, insurance companies are required by law to refrain from treating their policyholders this way. Actions in Bad Faith Insurance companies engage in recognizable actions when they are acting in bad faith. For example, you may have received a diagnosis from your doctor, but your insurance company’s medical examiner decides to disregard it. Your insurance company may require you to fill out an endless amount of paperwork in order to encourage you to give up the claim. The insurance company may decide to call your injury and illness. One of the worst practices is to cancel the policy after the injury occurs to avoid paying the claim. What You Can Do If you believe that your insurance company is acting in bad faith, one very important step you can take is to hire a personal injury attorney. For example, if you have been involved in a car accident and your auto insurance company or the insurance company of the at-fault driver is actively working to deny or delay your claim, an experienced car accident lawyer will be able to aid you in filing a claim for everything that you are entitled to receive. After you hire an auto accident lawyer, the fight will be taken out of your hands and placed into the capable hands of your knowledgeable attorney. Some people have been severely injured in 18 wheeler accidents, and they are currently being treated in the manner described above. If this is your experience, there are several things you can do to rectify this situation. For example, you can visit the website of your state’s Department of Insurance and file a formal complaint against the insurance company. You should also keep detailed records of the communications that transpire between you and the insurance company to document how you are being treated. Finally, you can hire a personal injury attorney who can make sure that your claim is taken seriously. You are entitled to begin action against an insurance company that is acting in bad faith even if you are not the injured party. For example, if your spouse or other family member passed away in an accident, you can file a wrongful death claim against the negligent party’s insurance company. A personal injury attorney will be able to help you in this circumstance and will assist you in filing for actual damages and even punitive damages. Decreased Instances of Insurance Fraud As time has gone by, it has become increasingly difficult for insurance companies to engage in insurance fraud. Because of increased reporting of bad faith practices, personal injury attorneys have become experts in this area of the law, and this will benefit those who are currently having difficulties obtaining payment from their insurance companies. Contact a personal injury attorney for help with your claim immediately.