Is that personal injury claim more than meets the eye? Identifying if someone is trying to create a bad faith setup early on can save significant time and resources. Here are five indicators every insurance professional and company should know.
Bad faith in Idaho
Idaho law requires insurance companies to handle claims, whether in product liability or other personal injury cases, fairly and promptly. Insurers must not misrepresent policy provisions or fail to acknowledge claims within reasonable timeframes. When insurance companies act unreasonably or show intentional disregard for these rules, they may face bad faith lawsuits.
Warning signs to watch for
The following signs might indicate a potential bad faith setup:
- Excessive documentation requests: A claimant may send overwhelming amounts of paperwork with unreasonably short deadlines. They might try to make your insurer miss something important.
- Unusual recording attempts: Be cautious if someone insists on recording all conversations without clear reasons or refuses to communicate except through recorded means.
- Arbitrary deadlines: Keep an eye out for demands that include artificial time limits not based on any policy provision or law. They may be designed to force rushed decisions.
- Strategic communication patterns: Notice if communications arrive late Friday afternoons or before holidays. Such an action creates pressure to respond during off-hours.
- Premature lawsuit threats: Early mentions of bad faith or threats of legal action before the claim investigation completes often signal a setup.
When you notice these warning signs, make sure to document all interactions thoroughly. This is often the first step to protecting your company from such an ill-intentioned setup.
Defending against bad faith claims
While identifying a claimant’s strategy is helpful, it remains crucial that you and your company act in good faith at all times. This consistent, documented conduct is your strongest defense against a bad faith claim. You do not have to prove your coverage decision was correct, only that your decision-making process was sound and reasonable.
The claims file is often your primary defense exhibit. Plaintiff attorneys will seek to discover every note and email to dispute that your actions were invented to deny a payout or refuse a settlement.
Successfully defending against an allegation of bad faith without a fully supported, reasonable claims file can be challenging. Proactively building a file that documents reasonable conduct throughout the claims process is essential. This approach can help empower your legal team to mount a strong defense and seek early dismissal.
