Resolving Bad Faith Insurance Claims in Texas

June 14, 2023

Resolving Bad Faith Insurance Claims in Texas

Consider the following scenario: You diligently protected yourself against potential dangers and losses by consistently paying your insurance payments for years. The unthinkable then occurs, necessitating the filing of an insurance claim. You anticipate that your insurance provider will act honestly and uphold their duty to offer the protection that you’ve purchased. Sadly, not all insurance providers fulfill their obligations. It’s critical to have competent legal counsel on your behalf when dealing with a bad-faith insurance dispute.

A Texas law firm called Callender Bowlin focuses on settling bad faith insurance claims and defending the liberties of policyholders. As you read on, we’ll discuss how crucial it is to work with a Callender Bowlin attorney to guide you through the difficulties of bad-faith insurance claims in Texas.

What is bad faith insurance?

Let’s first define what bad faith insurance is before getting into the intricacies of handling bad faith insurance claims.

The sorts of damages that can be sought as a result of this, as well as the legal definition of what is and is not considered is bad faith insurance, also called unfair claims practices, which differ by state. However, generally, an insurer could be accused of behaving in bad faith if they purposefully neglect to look into a claim, hide clauses in contracts, drag out settlement talks, and other similar acts.

The concept of “good faith” in policies, according to wherein both the policyholder and the insurance provider must act in accordance with the terms of the contract, is the basis for the concept of “bad faith.”

Understanding Bad Faith Insurance Claims in Texas

Every state, including Texas, has its own regulations and legislation controlling bad-faith insurance claims. In Texas, bad faith insurance claims are governed by particular statutes and legal precedents that specify the rights and redress that policyholders are entitled to.

Texas law permits policyholders to pursue damages for both the initial claim and any harm brought on by the insurance provider’s bad-faith actions. Financial losses, mental suffering, and in severe circumstances, punitive damages, are only a few examples of these damages.

Statutory Bad Faith Claim in Texas

Under Chapter 541 of the Texas Insurance Code, you have several various legal options for taking action against your insurance provider. These assertions comprise:

  • Misrepresenting a crucial fact or a clause in a policy;
  • Refusing to settle in good faith when liability is very obvious;
  • Omitting to adequately explain the grounds for a claim denial;
  • Failing to confirm or reject the coverage in a timely manner; and
  • Refusing to settle a claim without making an extensive investigation.

Chapter 542 of the Texas Insurance Code also establishes several kinds of obligations for insurers in relation to how they must react to, look into, and pay insurance claims. These criteria are distinct from the bad-faith actions that are forbidden by Chapter 541. You have the right to receive attorney’s fees and damages in the amount of an annual 18% penalty if your insurer breaks the law.

In a nutshell, insurance firms have a responsibility to finish their investigations, decide whether to pay claims, and make payments quickly. The insurance firm’s decision should typically be rendered within 60 days. You may be eligible for attorney’s fees in addition to other penalties if you don’t follow the technical standards set forth in the prompt payment regulations.

Why Resolving Bad Faith Insurance Claims is Important

For policyholders, resolving insurance claims made in bad faith is crucial. When an insurance provider behaves deceitfully, it not only causes harm to the policyholder but also damages the industry’s reputation for honesty and integrity.

By making insurance providers answerable for their acts, we make it abundantly apparent that we will not put up with fraudulent business practices. Resolving claims made in bad faith helps policyholders regain trust in the insurance system by ensuring they get the settlement amount to which they are legally entitled.

The Role of a Lawyer in Resolving Bad Faith Insurance Claims

A thorough understanding of insurance law and the strategies used by insurance providers is necessary to successfully resolve bad faith insurance claims, which can prove to be a difficult and time-consuming procedure. At this point, it is essential to work with a bad faith insurance lawyer who has experience handling bad-faith insurance claims.

An experienced attorney at Callender Bowlin can help you manage the complexities of the legal system, negotiate with insurance providers on your behalf, and, if needed, defend your rights in court. They will represent your interests and put forth great effort to see that you are fairly and justly compensated for your losses.

Benefits of Hiring a Lawyer from Callender Bowlin

A Callender Bowlin attorney can help you resolve bad faith insurance claims in Texas and provide several important advantages. First and foremost, our attorneys are highly skilled and knowledgeable about the subtleties of bad-faith insurance claims. We have won several lawsuits against insurance providers and obtained beneficial results for those we represent.

Our attorneys also possess an in-depth understanding of Texas insurance legislation and the legal techniques required to contest bad-faith actions. You can benefit from our experience and improve your chances of having your claim successfully resolved by opting for a lawyer from Callender Bowlin.

How to Handle Insurance Claims Made in Bad Faith

Bad faith insurance claim resolution often entails several procedures, each requiring precise attention to detail and calculated judgment. Here are the main processes involved in dealing with bad faith insurance claims, whereas the exact process may change depending on the particulars of your case:

Gathering Evidence

To resolve a bad faith insurance claim, all pertinent evidence must first be gathered. Reviewing your insurance contract, recording your losses, and gathering all correspondence and communications with the insurance provider are all part of this process. When trying to make a compelling argument against the insurance provider’s bad faith actions, the evidence you acquire will be of utmost importance.

Negotiating with Insurance Companies

Your attorney will negotiate with the insurer after obtaining evidence. They will explain your case while emphasizing the insurance company’s bad-faith actions and arguing for just recompense. For clients to obtain a good settlement, skilled attorneys from Callender Bowlin specialize in negotiation strategies and know how to strike back against the insurers.

Filing a Lawsuit

The next step is to sue the insurance provider if negotiations don’t result in an appropriate settlement. Your attorney will prepare the required legal paperwork, describing the claim and providing evidence of bad faith. The act of bringing a lawsuit shows your determination and desire to fight for your legal entitlements as a policyholder.

Mediation and Settlement

Prior to going to trial, mediation may be necessary in some circumstances. In mediation, the policyholder and the insurer negotiate with the assistance of a neutral third party. Before resorting to court, it is hoped that a mutually win-win settlement can be reached.

Going to Trial

The dispute may go to trial if mediation fails to result in a fair settlement. Before a judge and jury, your attorney will present your case, claiming that the insurer behaved in bad faith and that you should receive the compensation that you are due. Even though facing trial can be a drawn-out and complicated procedure, you can be assured of your ability to pursue justice with the help of a Callender Bowlin attorney.

Frequently Asked Questions

How long does it take in Texas to settle an insurance claim involving bad faith?

The length of a bad faith insurance claim can change depending on several variables, such as how complicated the situation is and how amenable the insurer is to negotiations. The time it takes to resolve can vary from months to a couple of years. Your attorney from Callender Bowlin will put forth a lot of effort to hasten the procedure and make sure your claim is settled as quickly as viable.

What losses am I eligible to pursue in a bad-faith insurance claim?

You may file a bad faith insurance claim to recover the initial claim amount, any financial losses brought on by the insurer’s bad faith actions, emotional suffering, and in extreme circumstances, punitive damages. Your attorney will evaluate the particulars of your situation and choose which damages to pursue.

What steps should I take to resolve a bad faith insurance claim?

Contact a Callender Bowlin attorney to begin addressing a bad faith insurance claim. We will examine the viability of your claim, assist you through the legal process, and uphold your legal entitlements. Take action right away to get the justice you deserve. Don’t wait.

Obtain Your Bad Faith Insurance Lawyer From CB Trial

For clients who have been wrongfully treated by their insurance providers, Texas law on bad faith insurance claims is crucial. You acquire a dependable ally who will battle tenaciously to make insurers liable for their acts when you hire a lawyer from Callender Bowlin.

You may manage the difficulties of bad faith insurance claims and obtain the reimbursement you are entitled to with our knowledge and commitment. Callender Bowlin can be reached at (713) 955-9719 or via our secure form to take a stand against injustice.