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Keeping The Faith, Losing The Faith, Good Faith And Bad Faith

While keeping the faith and losing the faith have nothing to do with insurance, good faith and bad faith do. Buying insurance is essentially buying a promise: your insurance company is promising to “cover” you, that is to provide you with insurance protection.

An insurance company has a duty to act in “good faith” with policy holders; that is to make good on the promise to provide that protection, to negotiate and to settle claims on your behalf. By not keeping with this duty they are said to be acting in “bad faith.”

In Minnesota the law states that while insurance companies of course give consideration to their own interest, that interest, in good faith, must also give equal consideration to the insured. Failing to do so is “bad faith.”

If you receive a settlement that is lower than expected this is not necessarily bad faith. A mere mistake also does not constitute bad faith.

However, if your adjuster is not communicating with you with as to why the settlement is much lower than you expected or is overtly hostile the company may be acting in bad faith.

Bad faith on the part of the insurance company includes:

•Threatening you

•Denying your claim without reason

•Refusing to show you requested documentation

•Making unreasonable and burdensome demands for documentation

•Offering a “lowball” settlement

•Failing to conduct a prompt and reasonable investigation into your claims

To ensure your rights are protected and the best settlement is obtained, contact an attorney who has experience with negotiating and holding insurance companies accountable.

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