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Insurance Fraud-The basic motive of buying an insurance is to safeguard health, belongings, and businesses. However, the interests of insurers and insureds differ after a claim has been filed. Insurance Fraud Attorneys of Alabama state that insurance companies are reluctant to pay insurance claims and always endeavor to limit the payments made to insureds. During this process insurance companies sometimes violate that which is committed in the insurance contract. According to insurance fraud attorneys of Alabama if such situations arise it imply that the insurance company has committed Insurance Bad Faith or an Insurance Fraud. If any insurance carrier has acted in bad faith then a competent insurance fraud lawyer of Alabama can help recover damages.
Car Insurance Fraud is rapidly turning into a huge burden in the U.S. today. These frauds have the potential of costing a single state millions of dollars every year. Car insurance fraud attorneys state that it is depressing to see that people are ignorant of the fact that they are being cheated by the insurance companies. People are being coerced and pressurized to pay high insurance premiums. People are actually paying in the excess of several hundreds of dollars than the actual value of insurance contract.
Most people believe that insurance companies cannot commit fraud or cheat them when they file a claim. It has been observed by car insurance fraud attorneys of Alabama that in many cases insurance companies have acted in bad faith and have caused great harm to individuals or businesses. Experienced car insurance fraud attorneys of Alabama are of the opinion that there are certain issues that creep up after buying a car or auto insurance. Some of the common issues involved in insurance bad faith and insurance fraud are:
- Misrepresented policy limits
- Over-broad Indemnification
- Not investigating the claim properly
- Unreasonable refusal of life insurance policy cover
- Refusing to cover a health insurance policy without valid reason
- Refusing a valid disability claim
- Pushing inappropriate life insurance policies
- Deception or Fraud
- Improper delay of a claim
Insurance companies are required by law to act in good faith toward their insureds. It is the duty of an insurer to promptly pay the claim of the insured, offer fair insurance settlements, and not denying legitimate claims. Still many insurance bad faith claims arise and it is the insurance company who is at fault. Insurance fraud attorneys of Alabama have handled a wide variety of insurance bad faith claims that include:
- Homeowner policies
- Comprehensive auto policies
- Health insurance policies
- Commercial general liability policies
An insurance policy is a contract between the Insurer and the Insured. If the insurance company denies or refuses to pay a claim which should be paid according to the terms of the policy agreed upon between insured and the insurer, it is termed violation of the contract, and the insured is entitled to recover damages and look for legal remedies for the breach by consulting an expert insurance fraud attorney of Alabama. An insured who has been victimized can also file a recovery lawsuit against the fraudulent insurance company. Alabama's specialist insurance fraud lawyers conclude that if the lawsuit is won then the insurer will be allowed to recover appropriate damages, which at least will equal the amount the insurer should have paid under the terms of the policy. Based on state law and the nature of the specific case, damages may also include other expenses that were acquired because of the breach as well as costs of the lawsuit.
Litigation involving Bad Faith-It is the practice of a number of insurers to willfully deny policyholders benefits sought through legitimate claims. Specialist insurance fraud lawyers of Alabama are of the opinion that an insurance company is legally bound to conduct all dealings with policy holders in accordance with good faith and fair dealing principles. This means that insurers have an obligation to find ways to pay benefits to policyholders, rather than to to find excuses of denying them. In practice, many insurance companies openly violate the principles of good faith in the majority of their insurance claims transactions.
Insurance fraud attorneys of Alabama argue that some of the most common practices adopted by the insurer for denial of claims are:
- Demanding exhaustive and unreasonable documentation from the policy holder
- Claim to have lost or never received proper information
- Declare that information was not received in a timely manner
- May assert that the claim made is not covered in the policy
When an insurance company fails to act in good faith then the insured can seek legal opinion of a competent insurance fraud attorney of Alabama and claim compensation for the damages through bad faith insurance litigation. Bad faith insurance litigation is pursued in the civil legal system. In a civil lawsuit, the plaintiff (in this case, the wronged insured) has the burden of proving that the insurer acted in bad faith. When the legal decision brought about through bad faith insurance litigation favors the insured, compensatory or punitive damages may be awarded.
Rights of an Insurance Policy Holder-According to the opinions expressed by insurance fraud attorneys of Alabama every policy holder holding any kind of policy like Life Insurance, Disability Insurance, Homeowners Insurance or any other type of insurance has the right to enjoy full benefits of the policy if it is a covered claim. According to opinion expressed by insurance fraud attorneys of Alabama an insurance policy is considered a legal agreement and the policy holder has the legal right to make sure that his/her policy and contractual agreements are upheld in full. The policy holder pays the premium and the insurance company has to pay the benefits.
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