Montana Insurance Bad Faith Lawyer
Insurance companies are supposed to cover the hard-working citizens of Montana when unexpected events happen in life. However, some companies will do anything they can to refuse to pay the obligations they said they would honor. When an insurance company is maliciously trying to prevent you from getting the coverage you paid for, you can bring a claim against the insurance company known as a bad faith insurance claim.
Insurance is an essential part of life. Bad actors need to be held accountable for their manipulation of the system. At Beck, Amsden & Staples, we are known for standing up to insurance companies and showing them that we mean business. Our satisfied clients have shown insurers that they have to take us seriously. Our Montana insurance bad faith lawyers will make sure you get the justice you deserve. Contact us today for your free consultation.
What is Bad Faith?
The insurance business operates on the principle that society benefits from multiple individuals covering the misfortune of others when an incident occurs. Under the system of insurance, we pay annual amounts to insurers, which is known as a premium. In exchange, the insurance companies promise to appropriately allocate those funds and ensure that the insurers cover any incident that occurs in the insurance policy. When an insurance provider tries to escape its legal responsibilities to a policyholder, this is known as bad faith insurance. Bad faith insurance can be found in different types of insurance including fire, car, health, and life insurance.
Montana Laws on Insurance Bad Faith
Insurance claims occur from two vantage points that can lead to bad faith claims. The first is a first-party claim. Under a first-party claim, an insured is claiming that one’s own insurance provider failed to provide adequate coverage following an accident or injury. The second type of claim is a third-party claim. Under a third-party claim, a victim is arguing that another party’s insurance failed to adequately fulfill its duty to provide coverage when the opposing party was at fault. Some states will vary on what claims may be brought against insurance providers. Luckily, in Montana, the laws favor the victim. The Montana Unfair Trade Practices Act allows both first-party and third-party claimants to bring action against insurance companies who violate their duty listed under the act.
What are Examples of Bad Faith Insurance?
Insurance companies can act in “bad faith” in a number of ways. Additionally, the Montana Unfair Trade Practices Act has an explicit list of prohibited acts. Some examples include:
- Denying a claim without proper justification
- Misrepresenting the terms of an insurance contract in relation to the policy’s coverage
- Delaying review of claim coverage
- Failing to carry out a proper investigation
- Offering less than the value of the covered claim
What are the Statute Limitations for a Bad Faith Claim?
Statute of Limitations refers to the legal time that a party has to file a claim for a particular type of lawsuit as explicitly set out by the state legislature. The Montana Unfair Trade Practices Act outlines the statute of limitations for insurance bad faith claims. The Act distinguishes between first-party and third-party claimants. First-party claimants have two years from the alleged date of the violation to file a suit. Meanwhile, third-parties claimants have only one year from the alleged violation to file a suit.
What are the Recoverable Damages in a Bad Faith Claim?
After proving that an insurance company acted in bad faith, the victim must prove that they suffered repercussions in order to be awarded a financial amount from the Court. Potentially recoverable damages fall into various categories, including:
- Punitive Damages – Punitive damages are typically uncommon in legal proceedings. Insurance bad faith claims are unique in that the Court specifically wants to punish insurance companies who act in bad faith to set an example and prevent future violations. Punitive damages are awarded by the jury at their discretion.
- Interest – Depending on the findings of the claim, a victim may be able to recover interest on the alleged amount they were to receive.
Call our Montana Insurance Bad Faith Attorneys Today
The insurance system is a vital part of our society, as hardworking Americans form a social contract to ensure no accident financially wipes out an individual. When an insurance company violates that trust, it must be held accountable for the sake of the community as a whole. If you have been made a victim, you deserve to recover the compensation that you were entitled to. At Beck, Amsden & Staples, our Montana insurance bad faith lawyers will fight and stand up for you against insurance companies who might try to bully you into a quick settlement. Call our Montana insurance bad faith attorneys today for your free consultation.