QuestionI was very badly injured in an auto accident (major back surgery...two fusions and a discectomy)(have been without work for about a year) and have clearly exceeded my policy limits with my medical bills, lost wages and pain and suffering. My question is this: who determines wether the amount that my insurance company offers me is too low and considered to be in bad faith? I expect the policy limits. They seem to be dragging their feet on it a bit, so I'm wondering, if they offer me less than the policy limits do I have a case for bad faith? (My policy limit is $500,000.....medical bills to date $185,000....lost wages around $150,000)
Thanks so much for your help!
-J-
AnswerJerry,
Bad faith is a tricky subject. In order for bad faith to play into the scenario, the insurance company must do something that is in breach of your contract, and it must seem or be that they did it intentionally. Normally making a low offer is not a bad faith issue. This is the simple definition. Other things such as damages suffered also come into play. If their actions cause no damage, then where is your claim?
So I must also inquire as to what type of policy we are dealing with. Is it a commercial auto policy, a health insurance policy, worker's comp claim. . . ? If it is your insurance company then there is the potential for bad faith, but in auto policies, the medical payments coverage or the pip coverage is limited, so I am making an assumption that you are dealing with the UM portion of the policy. Generally a third party cannot recover under a bad faith cause of action because of the lack of a contract to breach or a "faith" to become "bad".
In summary, I would ask that you call our office for a free "run down" on your case. There are just too many factors that can play a part in a bad faith situation, and they definitely warrant the use of a sharp attorney.
Information is always free at Petty Details, LLC. Call us and see for yourself. I hope this helps!
JP
