People buy insurance so that insurance can lessen the pain by paying for the damage when a disaster happens. You and I, as policyholders, pay our monthly premiums for years, hoping never to file a claim. Unfortunately, when a disaster strikes, we can’t always rely on the insurance company to support us. Insurance companies routinely fail to meet their obligations under the policy. If an insurance company fails to pay an insurance claim promptly, it may lead to a bad faith claim against the insurance company.

If you meet the terms of your agreement with the insurance company, the insurer must pay up. Our firm has successfully sued many major insurance companies to compel them to deliver the full and complete insurance coverage they promised. Moreover, when an individual suffers from bad faith conduct, we often manage to recover sums exceeding the insurance policy ‘limits’ due to the emotional distress resulting from the bad faith conduct.

INSURANCE CLAIM DISPUTES

Types of Insurance Disputes

Types of Insurance Claims

Insurance Companies Who Wrongly Deny Coverage

Bad Faith Lawyer Serving Kentucky and Indiana

Common Examples of Bad Faith

Declaratory Judgment Actions and Examinations Under Oath

Damages

The Role of Public Adjusters

TYPES OF INSURANCE CLAIM DISPUTES

Insurance coverage disputes often involve the following types of insurance policies:

• Business Insurance
• Homeowner’s Insurance
• Life Insurance Claims
• Home Fire Insurance
• Flood Insurance
• Commercial General Liability Policies

TYPES OF INSURANCE CLAIMS

Insurance claims that repeatedly spur bad faith denials by the insurance companies are:

• House fires
• Apartment fires and thefts
• Burglary claims from houses and apartments
• Water damage
• Flood damages
• Tornado
• Vandalism
• Car theft

INSURANCE COMPANIES WHO WRONGLY DENY COVERAGE

In Kentucky, common insurance companies involved in claim disputes are:

• State Farm
• Allstate
• Travelers
• GEICO
• Progressive
• Liberty Mutual
• Farmers
• Nationwide

BAD FAITH LAWYER SERVING KENTUCKY AND INDIANA

In Kentucky, an insurance company must protect its insured individuals from legal liability by settling claims against them if it reasonably can do so within policy limits. However, insurance companies often find reasons to deny coverage. Once they accept coverage, they engage in a strategy of “low balling” a claim and rejecting the opportunity to settle within policy limits. This “low balling” exposes the insured person to unnecessary lawsuits and liability.

Under Kentucky law, if an insurance company wrongfully denies a claim, low balls a claim, or delays paying a claim without necessity, it triggers a separate cause of action against the company. You can sue the insurance company for common law bad faith and/or for violating the Unfair Claims Settlement Practices Act, KRS 304.12-230. Violations of the Act can lead to the recovery of attorney fees. Being wrongfully denied an insurance claim is extremely frustrating, and insurance companies rely on people giving up.

COMMON EXAMPLES OF BAD FAITH

Insurance companies often engage in the following tactics to exhaust their claimants, hoping they will abandon their claims:

• They request an Examination Under Oath (EUO) or multiple EUOs without proper justification.
• They deny the claim without conducting a full and complete investigation.
• They delay, discount, or deny payments.
• They hire “experts” whose main goal is to support the claim’s denial rather than to gather information fairly to adjust the claim accurately.
• They continuously request more documents and other information from the insured to wear them down, hoping they will abandon the claim.
• They request information not required by the policy.
• They exhibit rude behavior during in-person visits by adjusters and investigators to intimidate the claimant into settling for less than the claim’s fair value or dropping the claim.
• They intentionally withhold claims information beneficial to the insured.
• They fail to inform an insured about policy provisions and coverage benefits when it’s evident the insured is unaware of them.
• They lie about the coverages and exclusions in the policy to avoid paying a valid claim.
• They threaten to criminally prosecute the insured if they continue pursuing the claim.
• They advise the insured that they do not need an attorney and claim that hiring one will harm their claim.
• They interpret policy language unreasonably to avoid providing coverage or payment.

DECLARATORY JUDGMENT ACTIONS AND EXAMINATIONS UNDER OATH

In addition to not paying valid claims fairly, insurers sometimes initiate legal actions against the insured, such as Declaratory Judgment Actions or Examinations Under Oath.

A Declaratory Judgment Action is when an insurance company sues the insured (and sometimes the injured party) to get a court to declare that the insurance does not cover the claim.

Insurers use an Examination Under Oath to delay or deny coverage instead of accepting and paying the claim. This process allows the insurer to question the insured in person, under oath, often in an office setting and typically in front of a court reporter, akin to court testimony. Insurers have the right to conduct this examination under most insurance policies. They often request it if they suspect dishonesty in the claim.

For instance, after a severe home fire, an insurer might ask a homeowner to undergo an Examination Under Oath. If the insurer suspects the homeowner set the fire intentionally, they might use this as a basis to deny the claim. It’s crucial not to undergo such questioning without expert legal representation.

DAMAGES

After disasters or serious accidents, families and businesses face significant losses. Individuals may be unable to work due to injuries. Businesses and individuals depend on insurance to shield them from severe financial loss. Yet, if an insurer delays or denies a claim unfairly, policyholders can seek damages.

Contract Damages: This is the actual value of the claim. For instance, if your policy covers a $500,000 loss and the insurer denies the claim in bad faith, you’re entitled to recover that amount plus interest.

Extracontractual Damages: These are damages beyond the policy’s coverages, including both economic losses and non-economic harms like emotional distress. Under the Unfair Claims Settlement Act, KRS 304.12-230, attorney fees are recoverable.

Punitive Damages: This is awarded to punish the insurer’s oppressive or fraudulent actions. In Kentucky, punitive damages are governed by KRS 411.184, and require clear and convincing evidence of oppression, fraud, or malice by the insurer.

THE ROLE OF PUBLIC ADJUSTERS IN AN INSURANCE CLAIM

Working with a public adjuster can offer significant benefits. These individuals, often former insurance company employees, understand the insurers’ tactics. However, a public adjuster cannot file or threaten a lawsuit on your behalf. An insurance dispute attorney can guide you when an insurance company’s behavior constitutes bad faith. We have experience working alongside public adjusters to ensure you get what you deserve.

Get a Free Consultation With a Louisville Kentucky Insurance Dispute Lawyer

If your insurer isn’t treating you fairly, you don’t have to tolerate it. Empower yourself to win this battle by engaging an attorney from The Kemper Law Office. We stand ready to confront reluctant and manipulative insurance companies on your behalf, so you don’t have to deal with the stress. We will exert all our effort to secure the benefits you initially deserved, plus compensation for any hardships the insurer inflicted on you during the mistreatment