What are the keys to understanding IFCA and bad faith claims? If your insurance company denies a claim for benefits, and you are legally entitled to those benefits, then you may have the opportunity to file a Bad Faith Claim against the insurance company.
Understanding the IFCA
The Insurance Fair Conduct Act (IFCA) is legislation that was created to ensure insurance companies comply with all requirements and conduct regulations. Under the IFCA, an insurance company must:
- Not deny claims without having an investigation performed.
- Not misinterpret facts or misinterpret policy language to avoid paying a legal claim.
- Adhere to all rules regarding claims settlements.
- Abide by all legal obligations.
What Happens if You File an IFCA or Bad Faith Claim?
If you were to file an IFCA claim against the insurance company, and you succeed in that claim, you can recover some losses in the form of financial compensation. You may receive the benefits of your insurance policy, payments for emotional damage, and reimbursement for any attorney’s fees you faced while your claim was being completed.
You must, however, prove these costs in court. That may mean hiring a medical expert to testify, using expert economists, or other experts who can testify to your exact losses and the validity of your claims.
What if I Feel I am a Victim of Bad Faith Insurance Practices?
Insurance companies have a fiduciary duty to all paying customers. If you feel that your insurance company denied your valid claim without a reason or without a proper investigation, you may be entitled to compensation.
The best defense you have is to contact an attorney. An attorney can help you through the process of getting the benefits you deserve, but also by holding insurance companies accountable for their bad faith practices.
You have rights as the insured. Your insurance company must respond to you quickly, investigate the claim in a specified amount of time, and respond to your requests diligently. Also, they must be fair when deciding to pay or not pay a claim.
Contact an Attorney About Your Bad Faith Claim
If you suspect your insurance company is operating in bad faith, you have protections under the Insurance Fair Conduct Act, as well as the Washington Consumer Protection Act.
Contact us today to schedule a consultation.