Experienced Insurance Bad Faith Lawyers Serving Illinois Clients
Nicknamed the Prairie State, Illinois is home to the world-famous city of Chicago, the residence of Abraham Lincoln during his time as president, and a number of national parks and areas of natural beauty.
If you live in Illinois and have long-term disability insurance, you may think you don’t have to worry about the financial implications of a disabling illness or injury. Sadly, however, it’s not always that simple. Insurers in the state often try to wrongfully delay or unreasonably deny valid disability insurance claims, and there’s typically very little policyholders can do about it alone.
The assistance of an Illinois insurance bad faith lawyer is crucial in cases like these. In this post, we break down exactly what you need to do when your Illinois disability insurance claim goes wrong.
How to Respond to a Disability Insurance Claim Denial
The first thing to remember upon receiving an adverse benefit determination is not to panic. There are many reasons why insurance companies choose to delay or unreasonably deny monthly disability insurance benefits disability insurance benefits, most of which you can successfully address with the help of an expert long-term disability attorney. With that in mind, there are steps you need to take as soon as you receive notice of the delay or denial.
First, thoroughly review the denial letter and the alleged adverse evidence that the disability insurance company used to make its decision. Make a copy of the document and keep it in your records, as it will be important in any challenge to the decision you decide to file later.
At this point, it’s a good idea to contact a long-term disability lawyer about your situation before going any further. If you make contact with your disability insurer prior to seeking legal advice, you may end up accidentally sharing compromising information with the company and further damaging your claim.
Understanding Bad Faith Insurance Litigation in Illinois
In Illinois, every insurance contract contains an implied covenant of good faith and fair dealing. In fact, this is a concept that extends far beyond the insurance industry; contracts are generally expected to contain these covenants.
A breach of this clause in a long-term disability insurance contract may occur when your insurer undermines your rights as an insured in some way. Generally speaking, this might occur if your insurer:
- Denies your claim without a reasonable basis for doing so.
- Fails to properly investigate your claim.
- Delays the processing of your claim without good reason.
- Misrepresents the terms of the insurance policy.
- Fails to pay benefits in a timely manner.
- Discontinues coverage without good cause.
- Makes it difficult for you to collect your monthly benefits.
Of course, every disability bad faith insurance case is different. The only way to know for certain whether certain conduct on your insurer’s part constitutes a breach of contract is to consult with an insurance bad faith disability lawyer.
When Do You Become Entitled to Long-Term Disability Insurance Benefits?
To qualify for monthly long-term disability insurance benefits, you must have a disability. More specifically, this means you must have an illness or injury that meets the definition of disability set out in your policy contract, and have your physician confirm this with objective and or subjective evidence.
When it comes to disability definitions, there are two broad categories you should be familiar with; “own occupation” and “any occupation.” “Own occupation” policies treat you as disabled once you can no longer do the essential duties of the occupation you had prior to the onset of your disability. Even if you can do another job with your condition, you will remain entitled to monthly benefits with “own occupation” coverage. With “any occupation” coverage, on the other hand, you are only considered disabled and eligible for benefits if you are unable to perform the duties of any occupation for which you are reasonably suited based on your education, training, experience, and how much money you were making.
As well as confirming that you have a qualifying disability, your physician will have to administer the most suitable course of medically appropriate treatment for your condition. You must also wait for the elimination or waiting period on your policy to expire before you become entitled to monthly disability insurance benefits payments. These periods vary widely from one policy to the next, so it’s always advisable to consult your own disability insurance contract to see how long the wait will be in your case.
What Role Does the Illinois Department of Insurance (IDOI) Have in Bad Faith Claims?
The Illinois Department of Insurance (IDOI) is the agency tasked with insurance industry regulation in the state. It’s generally responsible for enforcing the law around insurance practices and assisting consumers by providing information about the industry and claim practice.
You should note, however, that the IDOI does not handle individual bad faith insurance claims. While it can take action against insurance companies that engage in bad faith practices on a systemic basis, this will likely be of no use to you in an individual dispute. If you believe you’ve been a victim of bad faith related to your disability insurance claim, the only real and effective way to rectify the situation is to work with a seasoned and successful Illinois insurance bad faith disability attorney.
How an Illinois Insurance Bad Faith Lawyer Can Help You
Long-term disability insurance policy documents are deliberately complex. If your provider denies your claim or delays your monthly benefits, you’re unlikely to have the time or the expertise to challenge the decision successfully. That’s where your Illinois insurance bad faith disability lawyer comes in.
Contact DarrasLaw today to schedule a free initial consultation about your case. We’ll provide a free initial disability claim or policy analysis, or a free initial assistance with your individual or group appeal.