Understanding Bad Faith Insurance Denials
Blue Shield of California is one of the state’s largest insurers – and one of the insurers most often charged with bad faith practices.
Bad faith insurance practices involve an insurance company failing to act in good faith when dealing with policyholders or claimants. This can take many forms, such as denying valid claims without a reasonable basis, delaying payment of claims without justification, or failing to properly investigate claims.
Fortunately, there are legal protections in place for people who are victimized by these practices. How these laws operate – and their relative strength – often depends on where you live.
How California Law Protects Residents
Under California law, insurance companies have a duty to act in good faith and deal with policyholders and claimants fairly. This means that they must thoroughly investigate claims, promptly pay valid claims, and provide a reasonable explanation for any denial of a claim.
If an insurance company acts in bad faith, policyholders or claimants may be able to bring a legal action against the company for damages. This type of lawsuit is known as a “bad faith insurance” claim.
To win a bad faith insurance claim, the policyholder or claimant must be able to show that the insurance company acted unreasonably and that this conduct caused the policyholder or claimant to suffer damages.
Blue Shield of California’s History of Bad Faith Claims
Blue Shield of California has been involved in a variety of high-profile court cases alleging bad faith insurance practices.
Additionally, Blue Shield of California has the highest complaint rate among enrollees for any large insurer in the state of California, according to the state’s Department of Managed Healthcare. Unexpected or unjustified denial of claims is one of the most common sources of these complaints.
This context should be carefully considered when choosing an insurer, or when determining if a bad faith practice may have occurred.
If so, the next step is finding a local bad faith insurance lawyer who specializes in this area.
Finding the Right Bad Faith Insurance Attorney
If you believe that Blue Shield of California (or another insurer) is acting in bad faith, it is important to speak with an attorney who is experienced in handling insurance disputes. A Bad Faith Insurance Attorney can help you understand your legal options and assist you in pursuing any remedies that may be available to you.
Working with an attorney with a demonstrated record of dealing with complex bad faith insurance litigation is important, as it will help ensure that you are treated fairly under the law and that you receive any compensation to which you’re entitled.