Most personal injury claims are settled with the insurance company of the at-fault party. For example, if you get into an auto accident in Las Vegas that wasn’t your fault, the liability insurance provider for the at-fault driver will likely handle your claim.
When an injured party files an insurance claim, the company has a legal duty to act in good faith as it investigates and resolves it. Unfortunately, insurance companies are in business to make money. Therefore, they often act in their best interest instead of acting in good faith.
When this occurs, the injured victim may have a bad faith claim against the company. Learn more about these claims here, and contact a lawyer for a free consultation if you need legal help.
What Is Bad Faith for an Insurance Claim in Las Vegas, NV?
Insurance policies are contracts. The insurance company and the policyholder are the parties to the contract. Contact law requires all parties to act in good faith and fair dealing.
The policyholder acts in good faith by paying the insurance premiums on time, abiding by the policy terms, and only filing legitimate claims. The insurance company acts in good faith by considering claims and working to resolve the claims in a timely manner.
Insurance bad faith refers to engaging in fraud or dishonesty in a transaction. Bad faith often involves failing to perform required duties and/or engaging in unfair practices. If your insurance company acts in bad faith, you can file a bad faith insurance lawsuit if:
- The insurance company denied your claim; and,
- The company knew or should have known there was no reasonable basis for denying your claim.
You must prove that the claim was a covered loss under the insurance policy. In other words, you must prove that had the insurance company acted in good faith, you had a valid, legal claim that would have been paid.
How Do Insurance Companies in Nevada Act in Bad Faith?
Nevada Revised Statute §686A.310 lists numerous activities that are considered bad faith. Examples of bad faith insurance practices include, but are not limited to:
- Misrepresenting insurance policy provisions or relevant facts relating to the coverage at issue
- Failing to acknowledge and act promptly when receiving information concerning claims
- Not adopting and implementing reasonable standards for investigation and processing claims promptly
- Failing to confirm or deny coverage for claims within a reasonable time after a claimant or the insured submits proof of loss
- Failing to negotiate a prompt, fair, and equitable settlement for a claim when liability has become reasonably clear
- Offering settlements that are substantially less than the value of the claim if a lawsuit and full recovery is subsequently secured
- Attempting to settle a claim with the insured for less than the amount a reasonable person would believe they are entitled to receive
- Altering an application without the knowledge or consent of the insured
- Delaying an investigation or payment of a claim by requiring unnecessary or overly burdensome information
- Failing to settle claims when liability has been reasonably made clear
- Misleading an insured or claimant about a statute of limitations
- Advising a claimant or insured not to seek legal advice
- Failing to provide a prompt and reasonable explanation for the denial of an insurance claim
Insurance companies are not required to approve every claim. The insurance company can deny claims for valid reasons. Examples of valid reasons for denials include lapsed insurance policies, claims not covered by the policy terms, and claims not caused by the insured.
However, an insurance company’s denial of a claim is not the same as a court stating the insured is not liable. You might still have a right to recover ocmpensation. Talk with a personal injury lawyer if your claim is denied to determine whether the denial is in bad faith.
What Damages Can I Receive for a Bad Faith Insurance Lawsuit in Nevada?
You may receive economic and non-economic damages for a bad faith insurance claim. The damages available include:
- An amount equal to the value of the claim that is the subject of the bad faith insurance lawsuit
- The cost of filing a lawsuit, including attorneys’ fees and court costs
- Compensation for the emotional distress caused by the insurance company’s bad faith practices
In addition to compensatory damages, you may also receive punitive damages. Juries award punitive damages to “punish” the insurance company for its intentional or malicious conduct.
What Is the Nevada Statute of Limitations for Filing a Lawsuit for Bad Faith Insurance Practices?
If you believe an insurance company has acted in bad faith, you might be entitled to compensation for damages. However, you must file a bad faith insurance lawsuit within four years from the date of the insurance company’s bad faith actions. There could be exceptions to the rule, so it is best to talk with an attorney now to avoid losing your right to sue for bad faith insurance practices.
The sooner you begin working with an attorney, the sooner your case can be resolved. Additionally, evidence can be lost or destroyed over time, and witnesses may move or pass away. Acting now can help preserve the evidence you need to prove your claim.
Types of Bad Faith Insurance Claims
A bad faith insurance claim may arise because of accidents and other incidents. Our attorneys handle all types of bad faith insurance claims, including, but not limited to, actions arising from claims filed under policies for:
- Medical malpractice insurance
- Car accident insurance
- Life insurance
- Homeowner’s insurance
- Business liability insurance
- Corporate insurance
- Health insurance
- Disability insurance
- Personal Injury Protection insurance
- Workers’ compensation insurance
Insurance laws can be confusing, and insurance companies rely on the difficult-to-understand laws to prevent the claimants and insureds from pursuing bad faith insurance claims. Do not allow an insurance company to convince you that you do not have the right to question their decisions or practices. Talk with an attorney to get help to fight the insurance company for the money you deserve.
Steps To Take if You Are the Victim of Bad Faith Insurance Practices in Nevada
If you have been treated unfairly by an insurance company, start collecting information and evidence. Keep a record of all conversations you have with the insurance company, including the date and time of the contact and the name of the person. Gather copies of all correspondence with the insurance company, your insurance policy, and documents related to your claim.
Collect evidence proving your claim is valid, including police reports, appraisals, photographs, witness statements, etc. Note each instance of bad faith, including the type of conduct, date, time, and person committing the conduct.
Talk with an attorney about your case. Take the information with you to your free consultation for the attorney to review.
Learn More About Bad Faith Claims During a Free Consultation With a Las Vegas Personal Injury Lawyer
You deserve to be treated with respect and fairness when you file a claim with an insurance company. If you are being treated unfairly, you have legal options. Call De Castroverde Accident & Injury Lawyers to schedule a free consultation with our Las Vegas Personal Injury lawyers at (702) 222-9999 to discuss your bad faith claim.
