When an individual or business in Iowa signs an insurance policy, it enters them into a contract with an insurance company. The individual or business, as the policyholder, has the responsibility to make their payments, and in exchange the insurance company provides medical, property and/or liability coverage (depending upon the policy).
Because one of the insurance company's major duties is to pay benefits for legitimate claims, policyholders count on their insurance companies to be there for them if a claim or loss occurs. For example, when a loss takes place in Iowa, the policyholder is entitled to make a claim for the amount of the loss as outlined in the insurance policy. This works out because the premiums from the policyholders are used to fund future insurance claims.
When a policyholder makes a claim, the insurance company typically will do one of the following:
Pay the claim
Deny the claim
Rescind the policy
Sometimes, insurance companies deny valid claims, delay payments, or underpay insurance claims. When insurance companies act unreasonably, they are not fulfilling their duty to their policyholders or acting in good faith. In fact, when insurance companies deny legitimate claims or do not investigate a claim properly, they are acting in bad faith. They should be considering the interests of their policyholders and not just their bottom lines.
Some insurance companies search for anything, such as misrepresentation, so that they can cancel a policyholder's contract once a claim is made. Insurance companies have been caught doing this with medical coverage. For example, an insurance company will accept a policyholder at application, but as soon as the policyholder puts in a claim the insurance company looks to see if there were any minor illnesses omitted or pre-existing conditions in the policyholder's past medical records. If anything is found in this investigation, the insurance company uses this as a reason to cancel the policy. The wrongful denial of an insurance claim in Iowa can or should be argued, and it could be considered bad faith or breach of contract.
If you believe you or your company is a victim of bad faith by an insurance company, you may be able to pursue financial compensation for your losses. Contact an experienced Iowa business litigation lawyer to handle your insurance coverage claim. The lawyers of Brady Preston Gronlund know how to get results. Call our knowledgeable insurance investigation attorneys today at (319) 866-9277 for a free consultation, or visit our website and fill out our contact form and we will contact you or send you information.