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The details of a bad faith insurance denial

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When you make an insurance claim, such as for disability benefits, you hope your carrier will understand your position and help you move through the application process in a clear and efficient manner.

Unfortunately, insurance companies are not in the business of paying out every claim they receive. Instead, there are times when they put up a fight, hoping to avoid a payout altogether.

Bad faith insurance denials are more common than they should be. This comes into play when an insurance company delays or denies a legitimate claim. While the insurance company does this to improve its chance of not paying any or all of the benefits, it is the policyholder who finds him or herself in a bad position.

If your claim is denied or delayed for any reason, it is important to know your rights. More specifically, you have to answer this question: should you file an appeal? This may sound like the best step to take, but there are times when this would not be in your best interest. In some cases, it does nothing more than give the insurance company more time to delay.

It doesn't matter why your insurance claim is denied. What matters is that you find out why and then learn what you can do to improve your chance of receiving benefits in the future. If you find yourself in this position, don't hesitate to learn more about your rights and the laws that govern insurance companies. You can find information on this topic by reading through our "Insurance FAQs" webpage.

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