Insurance companies have a legal duty to handle claims fairly and in good faith. When they engage in deceptive practices, unreasonable delays, or unjustified denials, they violate this duty and cause real harm to policyholders who depend on their coverage. If you suspect that an insurance company has acted in bad faith, you have the right to pursue a legal claim against the entity—and a Knoxville personal injury lawyer can help you pursue justice.
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What Constitutes Insurance Bad Faith in Tennessee?
According to Tennessee Code § 56-7-105, insurance companies are required to honor their commitments to policyholders and handle claims fairly. Bad faith occurs when an insurer deliberately disregards your rights or shows indifference to their contractual obligations.
Insurance bad faith can take many forms, but common examples include:
- Unreasonable delays in processing or investigating claims
- Denying claims without proper investigation
- Making unreasonable demands for documentation
- Misrepresenting policy terms or coverage
- Using biased or unqualified experts to evaluate claims
- Offering settlements far below the claim’s actual value
- Failing to respond to communications
- Making false accusations to avoid payment
- Interpreting policy language in an unreasonable manner
- Refusing to pay valid claims without justification
Damages in Bad Faith Insurance Claims
When an insurance company acts in bad faith, the entity and its adjusters deserve to be held accountable. Under Tennessee law, you have the right to recover the full amount due under the policy in question when you pursue a bad faith claim. Additionally, you have the right. to recover a penalty of up to 25% of the original claim value. This penalty intends to discourage insurance providers from engaging in these unfair practices.
For example, say that you are seeking compensation for $50,000 in damages after being injured in a car accident. The insurer denies your claim without proper investigation, prompting you to open a bad faith case. If your claim is successful, you could be entitled to up to $62,500—your original claim value plus a 25% penalty.
What Can an Insurance Bad Faith Lawyer Do for You?
To successfully pursue a bad faith claim, you need knowledge of complex insurance regulations, the ability to interpret policy terms, and an understanding of industry standards. These claims can be challenging to handle alone, but a Knoxville insurance bad faith lawyer can help level the playing field.
When you hire an attorney to represent your bad faith claim, they will get to work by documenting violations, gathering evidence, and building a case that demonstrates the insurer’s misconduct. Your lawyer will analyze communications, policy documents, and claim histories to establish patterns of unfair treatment.
An insurance bad faith lawyer will understand the tactics that insurance companies use to avoid payment and can identify when they cross the line into unfair practices. They know how to counter these strategies effectively so that you can recover the compensation that you deserve and need to move forward with your life.
Contact The Lawyers of Brown & Roberto Today
Insurers acting in bad faith count on policyholders giving up when faced with denials or delays. Having legal representation sends a message that you understand your rights and will not accept unfair treatment.
If you suspect bad faith in Knoxville, trust The Lawyers of Brown & Roberto to fight for your rights and recover the settlement you deserve. Contact us at (865) 691-2777 to schedule a free consultation and plan your next steps.