What is bad faith?

You pay your premiums to your insurance provider in Shelby every month with the expectation that should the time come the you need coverage, it would be automatic. This assumption seems to fly in the face of the age-old adage that insurers do not stay in business by paying on claims. Yours may indeed look for reasons to deny you coverage. While denials are permissible, they cannot be based off bad faith. 

What is bad faith? A legal concept exists known as "the implied covenant of good faith and fair dealing." Per the Cornell University Law School, this obliges parties to a contract to operate honestly and openly with each other, while avoiding the misrepresentation of facts, breaking predetermined agreements or using deceit to avoid fulfilling obligations. What this means is that while your insurer can look for legitimate reasons to deny your claim, in cannot employ bad faith tactics such as purposely delaying decisions, pushing you to settle for a lesser amount, making threatening or misleading statements, or simply refusing to pay on a valid claim. 

You might think the word "implied" offers a lot of leeway in interpreting what duties your insurers has towards you. However, rulings issued by Tennessee courts have established the standard needed to be met in order to prove insurance bad faith. The criteria are as follows: 

  • Your policy must have come due and payable
  • You must have made a formal demand for payment
  • 60 must have passed in which no payment was made before initiating action
  • The refusal to pay must not have been in good faith

The advantage that you have is that good faith is not an obligation set by a contract, but rather a standard the law forces your insurance provider to adhere to. 

No Comments

Leave a comment
Comment Information

Injured In A Car Wreck? We Can Help!

  • Calls & Emails Returned Within 24 Hours
  • FREE Initial Consultation
Get A FREE Consultation

What Our Clients Are Saying

  • "What I really liked about working with David and his staff is that they really care about me and my health. I am a real person and not just a number to them. I highly recommend the Gold Law Firm if you get in a car wreck." Wayne in Bartlett
  • "David and his associates settled my case by getting me a total of $100,000.00 from the insurance company. I am very pleased with how my case was handled by the Gold Law Firm and highly recommend their firm to anyone that has been in an accident." Rebecca D. in Missouri
  • "David forced the insurance company to give me nearly seven times my medical bills. David also got many medical providers to accept reductions in my bills resulting in more money in my pocket. I would highly recommend The Gold Law Firm for anyone in a motorcycle crash." Jamia R. in Memphis
  • "David made a claim with my insurance company and we ended up getting $55,000.00 from both insurance companies. David got all my bills and liens reduced and I was able to put about $20,000.00 in the bank after my bills were paid." Jennifer C. in Memphis
  • Memphis Bar Association
  • Tennessee Bar Association
  • Martindale Hubbell | PEER RATED | For Ethical Standards and Legal Ability | 2017
  • Martindale-Hubbell | Client Champion Gold / 2017
  • Avvo Client Choice 2015
  • David Alan GoldReviewsout of 18 reviews
  • BBB Accredited Business | BBB Rating: A+
  • Three Best Rated
  • Best Business of 2018 | Three Best Rated | Excellence
  • Best Personal injury lawyers in Memphis
  • Three Best Rated - Certificate of Excellence - Memphis, TN - Top 3 Personal Injury Lawyers - David A. Gold

Don’t Wait. Get A Free Consultation Now. Submit the form and we’ll get back to you as soon as possible to schedule your consultation.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Back to Top