When a person purchases an insurance policy, the individual enters into a contract with that insurance company which includes rights and obligations for both parties. Most simply, the insured is expected to pay premiums and other fees while not breaking any of the rules of the policy, whereas the insurance company has a legal responsibility to provide coverage when a policy calls for it. Additionally, many policyholders may not know this, but their rights as a customer also include the right to receive notices or open communication in case of a change to their policy or claim status.
Insurance companies have a responsibility to their customers to provide certain important pieces of information, such as any changes that could directly affect a person’s policy or any information regarding a current claim. The following may be considered a violation of the good faith terms of an insurance policy:
If an insurance company doesn’t notify its policyholders when it takes certain actions that can directly affect those individuals, this misdeed may count as insurance bad faith.
If your insurance company has failed to maintain an open line of communication with you about your policy, you may be entitled to pursue legal action against your insurer for the financial losses this lack of communication could cause. To learn more about how we may be able to help you plan and prepare for this legal process, contact an attorney from Williams Hart today by calling (713) 352-0031.