Insurance companies are supposed to provide coverage for drivers who sustain injuries or property damage in motor vehicle accidents.
Unfortunately, however, insurers do not always comply with their own coverage requirements.
If you’ve received a wrongful denial of your insurance claim, we want to help.
Give the team at the Fob James Law Firm a call to discuss how we can help you fight for your rights today.
Insurance Bad Faith Law: An Overview
When an insurance company wrongfully denies coverage under your policy, you may have a legal claim for relief.
This is sometimes referred to as a bad faith insurance claim.
Use our guide below to learn more about bad faith insurance in Alabama and what to do if you’ve had your claim wrongfully denied.
What Is Bad Faith Insurance?
According to Alabama Code section 27-12-24, “no insurer shall, without just cause, refuse to pay or settle claims arising under coverages provided by its policies in this state and with such frequency as to indicate a general business practice in this state.”
Evidence of such general business practice can include:
- Substantial increases in the number of complaints against the insurer received by the Insurance Department;
- Substantial increases in the number of lawsuits against the insurer or its insureds by claimants; and
- Any other relevant evidence.
If you’re not sure whether the denial of your claim might give rise to a bad faith insurance claim, give us a call to discuss the facts and circumstances of your case in more detail.
How to Win Your Bad Faith Insurance Claim
To win on a bad faith insurance claim, there are a few elements you must be able to prove.
Specifically, you must be able to show:
- The existence of an insurance contract between the parties and a breach of the contract by the insurer;
- An intentional refusal by the insurer to pay the insured’s claim;
- The absence of any legitimate reason for the denial;
- Actual knowledge of the insurer of the absence of any legitimate reason for the denial; and
- The insurer’s intentional failure to determine whether there was a legitimate or arguable reason for the insurer’s refusal to pay the claim.
Essentially, the plaintiff must do more than simply show nonpayment of the claim by the insurer.
Instead, the plaintiff must be able to prove that the insurer had no factual or legal defense to the insurance claim.
Fob James Law Firm: Your Bad Faith Insurance Attorneys
Proving a bad faith insurance claim is never easy.
However, having an experienced team of attorneys in your corner can greatly improve your chances of success.
If you’ve had your Alabama insurance claim wrongfully denied and aren’t sure where to turn, know you don’t have to handle this alone.
With more than 40 years of experience advocating for injury victims in need, you can feel confident knowing you have a knowledgeable and qualified team on your side.