There are a few elements that will play an important role in determining the outcome of any bad faith insurance claim made against an insurer, and documentation is absolutely one of them. Proving bad faith from an insurer typically requires the ability to produce documented evidence of improper behavior, and there are several related areas where this theme comes into play as well.
At Phoenix Deposition Services, we’re happy to provide a huge range of such services, including comprehensive court reporting and legal transcription services for clients throughout Phoenix and nearby areas. What are some important elements of bad faith insurance cases where documentation plays a role, and how do professionals like ours serve important positions here as well? Let’s go over everything you should know.
Common Law Bad Faith
There are two general formats that these cases may proceed under, and the first of these is known as common law. Common law elements of bad faith insurance will vary from state to state, but there are a few which are fairly common.
Specifically, proving a common law claim of bad faith will generally require these two elements be proven:
- Benefits due under the policy were specifically withheld: The plaintiff must establish that they had a valid claim under the terms of the policy, but that the insurer refused to pay out on it. In some states, the filer must make a final demand from the insurer before filing a claim.
- The reason for refusing benefits was unreasonable: Next, it must be proven that the company was acting unreasonably in refusing to pay benefits. This will require a thorough evaluation of the circumstances and evidence by an experienced attorney, in order to determine if the company had any reasonable justification for denying the claim.
If both of these elements can be proven, then bad faith may be established – though again, this will vary from state to state.
Statutory Bad Faith
Statutory bad faith claims, on the other hand, are based on laws made by state legislatures. Many states have such laws, which are in place to protect individuals from deceptive practices from insurance companies.
Again, specifics here will vary between states. There are some common elements, such as allegations that the company failed to provide a reasonable explanation for denial of a claim, or that the company did not attempt to make a prompt, fair and equitable settlement of a claim when liability is clear. There may also be several others.
Role of Court Reporters and Transcribers
As you may have guessed from reading the above, bad faith insurance cases require a great deal of documentation in order to be successful. This is where professionals like our court reporters and transcribers come in – they play a vital role in helping to collect, organize, and present all the evidence that will be needed.
In many cases, attorneys will work with our team to help collect relevant documents and testimony from witnesses. We can also help convert all of that material into a format that can be easily understood and used in court.
If you’re involved in a bad faith insurance case, make sure to get in touch with us – we’ll be happy to work with you and help make sure your case has the best chance of success. For more on this or any of the services provided by our Phoenix court reporters, speak to the team at Phoenix Deposition Services today.