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Insurance Companies Acting in Bad Faith

Insurance companies are designed to protect their policyholders financially when their clients need them most. There is a paid-for promise and contractual agreement that the insurance provider will work with and compensate a client for the claims covered in their insurance policies. Unfortunately, some insurance companies practice bad faith insurance ethics that result in financial strains on the clients that are not receiving the proper compensation.

Bad faith insurance law exists to protect consumers from unethical insurance practices. Insurance bad faith occurs when the insurance provider deliberately deceives or refuses to perform a contractual obligation to the appropriate policyholder. Most United States jurisdictions protect policy holders from bad faith insurance through implied covenant of good faith and fair dealing.

According to the website of Smith Kendall PLLC, bad faith insurance may arise during coverage disputes, deceptive trade practice violations, and insurance code violations. For example, an insurance adjuster may be negotiating in bad faith if insisting their policyholder’s claim is worth significantly less or offers a low settlement offer with specific reasons for the lower status. Bad faith may also arise if the company engages in fraud or blatant lies that impede the policyholder’s ability to pursue the claim.

When an insurance company breaches their contract, a tort claim may be filed with the breach of contract claim in order of the policyholder to receive the necessary compensation. In cases that are brought to trial, a settlement greater than the original policy claim is often reached to return damages caused to the client.

If you believe you are a victim of bad faith insurance, consult an insurance attorney in your state to discuss your legal options and receive compensation for the financial strain you have suffered.

Filing an SR-22

An SR-22 is a guarantee of car insurance that is often required after traffic violations occur. The form is not car insurance; it is a certificate of financial responsibility that works as proof that the holder has insurance that meets the state’s minimum car insurance requirements. More specifically, an SR-22 ensures that the certificate holder will maintain the minimum insurance requirements for a set amount of time.

According to the website of Habush Habush & Rottier S.C. ®, SR-22 coverage is often required when a number of serious traffic violations occur. These could include driving under the influence, driving while intoxicated, driving without car insurance, involvement in a serious car accident, or driving with a suspended or revoked license. While SR-22 durations can vary, most states require the SR-22 certificate to be filed for three years.

Most states require the SR-22 to be filed directly through the car insurance provider to ensure that there is no falsification of car insurance status. There is generally a small, onetime fee associated with filing an SR-22 with the Secretary of State department. Unfortunately, since SR-22 certificates are directly related to severe traffic violations, car insurance premiums often go up substantially because the driver is now a “high-risk” driver. However, there is always a financially feasible option for everyone in need of an SR-22 certificate.

There are some cases when insurance providers will refuse to insure a high-risk driver and will deny an SR-22 certificate to their client. This requires an individual to shop for insurance to cover them for the future. In some cases, a person may be forced to file with the state insurance, paying high premiums than for most market insurance companies.

Having and keeping up to date insurance is important to protect yourself from financial repercussions. There are affordable, easy options that still meet the state’s minimum requirements. For more information about filing an SR-22, seek advice from your local car accident lawyer.