Can my insurance company make me file a lawsuit just to collect a fair payment on my claim?

An insurance company can violate the Kentucky Unfair Claims Settlement Practices Act and engaged in a bad faith insurance practice where it compels a claimant to file a lawsuit to recover amounts due under an insurance policy by offering the insured substantially less than the amounts ultimately recovered in a lawsuit.

An insurance company can be liable for a bad faith insurance practice where three things are proved:

  • The insurance company is obligated to pay the claim under the terms of applicable insurance policy
     
  • The insurance company lacks a reasonable basis in law or fact for refusing to pay or denying the claim, and
     
  •  The insurance company either knew there was no reasonable basis for refusing to pay or denying the claim or acted with reckless disregard for whether such a basis existed.

Robert L. Abell, an insurance claims lawyer in Lexington, Kentucky, is an experienced insurance bad faith attorney, who can help you get your insurance claim paid or recover damages caused by an insurance company's bad faith practices.