Have you ever felt like your insurance company is deliberately delaying, denying, or underpaying your valid claim? If so, you may be a victim of bad faith insurance practices. As a personal injury attorney with over 30 years of experience, I’ve seen firsthand how insurers can act in bad faith, leaving policyholders feeling frustrated and betrayed. In Louisiana, there are laws to protect you from these unscrupulous tactics. Let’s delve into what constitutes bad faith insurance, its prevalence in Louisiana, and what you can do about it.
What is Bad Faith Insurance?
Bad faith insurance occurs when an insurance company unfairly or unreasonably denies, delays, or underpays a legitimate claim. This can manifest in various ways, including:
- Unreasonable Delays: Refusing to communicate or dragging out the claims process without justification.
- Unfounded Denials: Denying a claim without conducting a proper investigation or providing a valid reason.
- Lowball Offers: Offering a settlement far below what your claim is worth.
- Misrepresenting Policy Terms: Intentionally misleading you about the coverage you’re entitled to.
- Failing to Defend You: Not providing adequate legal defense in cases where you’re being sued.
How Common is Bad Faith in Louisiana?
While there are no definitive statistics on the prevalence of bad faith insurance in Louisiana, it’s a widespread issue across the U.S. The American Association for Justice estimates that insurance companies engage in bad faith practices in 17% of all claims. In Louisiana, where insurance premiums are among the highest in the nation, the problem may be even more pronounced. A 2021 study by the Louisiana Department of Insurance found that consumer complaints against insurers increased by 12% compared to the previous year. This suggests a growing number of policyholders are encountering difficulties with their claims.
Louisiana Laws Protecting Policyholders
Louisiana has specific laws designed to protect policyholders from bad faith insurance practices. These laws impose penalties on insurers who act in bad faith, including:
- Louisiana Revised Statutes 22:1892: Requires insurers to promptly and fairly adjust claims and make reasonable settlement offers. Failure to do so can result in penalties of up to 50% of the amount due or $1,000, whichever is greater, plus attorney fees and costs.
- Louisiana Revised Statutes 22:1973: Imposes a general duty of good faith and fair dealing on insurers. A breach of this duty can lead to damages, including penalties and attorney fees.
What to Do if You Suspect Bad Faith
If you believe your insurance company is acting in bad faith, don’t give up. Here are some steps you can take:
- Document Everything: Keep records of all communication with the insurer, including emails, letters, and phone calls.
- Review Your Policy: Understand the terms of your coverage and what you’re entitled to.
- Consult an Attorney: An experienced personal injury lawyer can review your case, advise you on your legal options, and advocate for your rights.
How Bart Bernard Injury Lawyers Can Help
At Bart Bernard Injury Lawyers, we’re committed to protecting policyholders from bad faith insurance practices. Our team has a deep understanding of Louisiana insurance law and a proven track record of holding insurers accountable. We’ll fight tirelessly to ensure you receive the compensation you deserve.
If you suspect bad faith, don’t hesitate to contact us for a free consultation. We’ll review your case, explain your rights, and explore all available options to get you the justice you deserve. Remember, you’re not alone in this fight.
Don’t Let Bad Faith Win – Contact Us Today
If you’re facing a frustrating insurance claim in Louisiana, Bart Bernard Injury Lawyers is here to help. We have offices in both Lafayette and Houston, ready to serve you. Don’t let your insurance company get away with bad faith practices. Contact us today and let us be your advocate.
