People trust insurance companies to provide them with financial assistance during difficult times. However, many insurance companies break that trust by unfairly denying customers’ claims.
Fortunately, you have legal options if your insurance claim was wrongfully denied. Insurance companies can give many reasons for denying a claim. Some are valid, while others are made in bad faith to save the company money. If there is evidence that an insurance company is dealing with you in bad faith, you might be able to file a lawsuit against it. Tennessee has laws to provide additional compensation to customers treated unfairly during the claim process.
If your insurance company denied your claim, our Tennessee personal injury attorneys for insurance claim denials can help you determine the best path forward. Contact Howe Law today at (844) 876-4357 for a free case review.
What Options Do I Have If My Insurance Company Denied My Tennessee Claim?
Having your insurance claim denied can be extremely stressful, but a few options are available to victims to challenge the denial and recover their benefits. Some insurance claims are denied for valid reasons and might not be able to be contested. Other claims are denied unreasonably and might require legal action to hold an insurance company accountable. The trouble with claim denials for many victims, though, is that an insurance company might use what seems like a good reason for denying a claim but is actually just a pretext to deny victim benefits. Our Tennessee attorneys for insurance claim denials can help determine if your claim was unfairly denied.
Challenging a Claim Denial
There are numerous reasons why an insurance company would deny a claim. Insurance companies tend to deny claims as most insurance providers’ main goal is to make a profit. However, you can usually appeal a claim denial through the insurance company.
Sometimes a claim is denied for reasons that could prove hard to challenge. For instance, if your injuries or the type of incident that caused them are not covered under your policy, a claim denial could be found to be reasonable. Also, a claim will likely be denied if sufficient evidence and proof of injuries are not provided for certain claims or if premiums remain unpaid.
Some claim denials could be due to error. For example, documents you provided with your claim could have accidentally been lost by an insurance adjuster, or your claim was denied because it was evaluated under older terms of your policy. However, other errors are less innocent, like when an insurance agent fails to follow their company’s procedures when evaluating a claim. If your claim is denied, it might be possible to reverse the decision through an appeal.
Filing a Lawsuit
Suppose your claim was denied, and the insurance company will not reconsider its decision. In that case, it might be time to think about whether filing a lawsuit is the right option to recover the compensation you deserve. Many claims are denied because an insurance company acts in bad faith, offering only a pretext reason for the denial or not providing a reason. However, a claimant cannot file a lawsuit immediately after their claim is denied. T.C.A. § 56-7-105 has several requirements that must be met before you can file a lawsuit for bad faith.
First, you must formally demand payment from the insurance company. The best way to accomplish this is to make your demand in writing, including your intent to pursue a bad faith claim if payment is not made in a timely manner. Documenting your demand will be important if you eventually file a lawsuit against the provider.
The law provides 60 days for an insurance company to acknowledge your demand with payment. Thus, you cannot file a bad faith lawsuit until the 60 days have passed. However, if 60 days have passed and no payment has been made, you are permitted to file a lawsuit if your claim was denied in bad faith. Our Nashville personal injury attorneys for insurance claim denials can help you determine if your claim was unreasonably denied and file your lawsuit against the liable company.
When Can I Sue My Insurance Company for Denying My Tennessee Claim?
If your insurance claim is unreasonably denied in bad faith, you can sue the insurance provider that denied it. However, you cannot sue for bad faith if a claim is denied for valid reasons, like unpaid premiums. There must be evidence of bad faith to file a claim successfully. The following are common signs that an insurance company is acting in bad faith in Tennessee:
- Failure to investigate promptly
- Failure to make prompt payment
- Failure to make a fair settlement offer
- Raising irrelevant defenses
- Relying on inapplicable exclusions
- Refusing to pay the appropriate amount for losses
- Unreasonable interpretations of the policy
- Making baseless accusations against a claimant
- Ignoring a claimant’s phone calls, letters, and emails
- Biased or unqualified experts used
If your insurance provider exhibited some or all of the listed behavior before denying your claim, you could have been denied in bad faith. Our Tennessee attorneys for insurance claim denials can help you prepare your bad-faith lawsuit to recover the benefits you are entitled to.
What Compensation Can I Recover in a Lawsuit for an Insurance Claim Denial in Tennessee?
T.C.A. § 56-7-105 also spells out what compensation claimants are entitled to if their bad faith claim is successful. In a successful bad faith action, claimants will recover the amount of the original losses from the denial of the claim, as well as additional compensation worth up to 25% of the losses suffered. The court could also award attorneys’ fees to a successful claimant.
Suppose the insurance company’s bad-faith conduct was intentional, malicious, or reckless. In that case, you can also claim punitive damages, which are given to punish a defendant. Our Knoxville personal injury attorneys for insurance claim denials can help you recover the compensation you deserve for the additional harm your insurance provider has caused.
Our Tennessee Attorneys for Insurance Claim Denials Can Help
If your insurance company wrongfully denied your claim, our Tennessee attorneys for insurance claim denials can help you hold your provider accountable. For a free case evaluation, call Howe Law at (844) 876-4357.