Overregulation and Loss of Bad Faith Lawsuit Rights
Insurance companies are regulated across the country, including by each of the 50 states. While each state, on paper, is looking to avoid abuses and issues from these insurance carriers, many mistakes could prevent them from effectively helping the consumer. In some cases, insurance companies can stack the deck against their policyholders and improperly influence these boards and regulatory bodies. We can review some of the cases in which this happens.
There is a common blanket term to describe how such an event could happen. It often occurs when the insurance company lies about the case to the regulators, causing an unfair and deceptive claim settlement practice. While such actions are unethical, they are often not punished unless the consumer fights back. Insurance companies will often say they are investigating the claim, but are just evading the regulators.
The big insurance corporations use many tricks to hide their tracks or flat out lie. Doing so to a government agency is illegal, but if the body is unable to follow up, the company can fatten their bottom line. Since such regulators can only investigate so much, the insurance companies often feel that they can go above or around the government.
These departments of insurance are often unable to fulfill their goals to the public. The big companies realize this and often run circles them, pilfering more and more money from their clients. By misleading the investigators, the cases often are resolved without real resolution. The regulators often drop their investigations, leaving the complainant out in the cold.
However, there are methods to make sure that the insurance companies do not get away with such nefarious practices. In their consistent misleading, the insurance companies do build up a reputation known tangentially to the regulators and well to public advocates. A skilled attorney specialized in insurance matters can correctly diagnose when the insurance company is not being truthful and is pulling the wool over the government’s eyes.
Assistance from such litigators and other government agencies can put pressure on the regulators and insurance conglomerates to force a conclusion. This may lead to charges from a state attorney general, as happened in New York, or a case by a private party against such practices.
Fortunately, Ehline Law’s experience and specialization allow them to be Southern California’s top advocates for those hurt by insurance practices. Our attorneys are well versed in case studies and can stop the insurance companies dead in their tracks when they try to get out of the policies they’ve promised their clients. Call us today for more information or a free consultation.