Albuquerque Insurance Bad Faith Attorneys
Insurance disputes typically fall into a category of law practice referred to as “Insurance Bad Faith.” As the name implies, these situations arise for both businesses and individuals when an insurance company fails to act in good faith. When you procure an insurance policy, you expect your insurance company to be there for you in the event of a claim. This is one of the underlying foundations on which commerce rests. Without that ability to trust that insurance will be there, people might not buy insurance, leading to a whole slew of losses that would cause real harm, both individual harm and harm to the overall economy. There simply would be far fewer successful businesses if average individuals and businesses were unable to manage their risks. The law reconginzes the importance of holding insurance companies accountable, and yet, there are many carriers who will continue to act in bad faith. Obviously, insurance policies come in many flavors, from health insurance and life insurance to typical types of business policies, such as general liability policies or specialty policies that cover professional malpractice.
Regardless of the type of policy, if the insurance company does not act in good faith when a claim arises, it often gives rise to a claim against the insurance company. Many times, when an insurance company fails to act in good faith, the policyholder may collect more than what would be contractually owed under the policy. A policyholder can take action against an insurance company under a variety of statutes, including New Mexico’s insurance code. Types of behavior that might give rise to such a claim would include the following:
- Refusing to defend a policyholder in the event of a lawsuit;
- Misrepresenting pertinent facts or policy provisions relating to coverage;
- Failing to act promptly or fairly with respect to a claim;
- Failing to clearly state whether there is coverage within a reasonable time after being presented with a claim;
- Not acting in good faith with respect to fair and equitable settlements of claims;
- Failing to settle a policyholder’s claim promptly when liability is clear.
Should you find yourself faced with difficulty in dealing with an insurance carrier, you believe that there may be a claim for insurance bad faith, do not hesitate contact our office for a free consultation.