Professional Disability Bad Faith Insurance
Professional disability insurers have been found liable for denying
coverage on claims brought by disabled professionals. In the
1970s and 1980s some of these insurers grossly oversold disability
policies to younger professionals, anticipating that few claims
would mount from this low risk population. However as the policyholders
aged and professionals became disabled, the claims mounted steadily.
Some of the companies decided to cope by unfairly denying claims
to cut their losses.
A Florida ophthalmologist who suffered a back injury and was
denied coverage was recently awarded 37 Million (June 2001) which
included punitive damages against the insurer.
Bad faith claims are basically a breach of the insurance contract,
when insurers use non-legitimate reasons to deny claims. Insurers
have a duty to the insured to examine claims in good faith and
use fair dealing when evaluating claims. To act in bad faith
requires the insurer to engage in unfair dealing not just a mistake.
Most lawsuits involve action against an insured's own insurance
company, and arises in situations where the insurance company
unfairly and without proper cause, fails to compensate the insured
for a loss covered by the policy, or unreasonably delays making
payments due under the policy.
If you believe you have been the victim of professional disability
insurance bad faith, we invite you to contact us by filling out
the information below to speak with an attorney about your case.