Everyone relies on some type of insurance every day. But if policyholders feel like they are not getting the benefit of that insurance policy, the policyholder can take action against the insurance company. The most common types of actions are breach of contract and breach of duty of good faith and fair dealing.
Breach of Contract
An insurance company can be liable for breach of contract if it fails to do what it is written under the insurance policy or contract. Generally, insurance companies draft the policies in such a way that they have more authority than the insureds. As a result, insurance laws have evolved to favor insureds by providing that contractual ambiguities should be construed in favor of the insured and that exclusions from coverage should be construed narrowly.
Breach of the Duty of Good Faith and Fair Dealing
The insurance company has a duty to deal with their insureds fairly and in good faith. The insurance laws imply this duty in every contract. The core of a bad faith claim is whether the insurer acted reasonably. If it did not, many states allow juries to assess more extensive damages than in a standard breach of contract suit, including punitive damages.
The legal process to challenge an insurance company’s actions can be complex. An attorney can guide you through the process and help you recover the damages to which you may be entitled. If you have an issue with your long-term disability insurance policy, elder law attorneys in Staten Island can help.