Honolulu Bad Faith Claims Attorney
Insurance companies in Hawaii are required to maintain a duty of “good faith and fair dealing” during the claim process with its policy holders. A bad faith insurance claim is a claim against an insurance company that has acted in bad faith by failing to perform its duty in good faith to the insured. Bad faith insurance claims, although not always easy to prove, can result in damages that in some cases may far exceed the original value of the personal injury claim that was filed. In addition to a tort claim, the insured person may also sue the company for breach of contract. The contract-tort distinction is significant because as a matter of public policy punitive or exemplary damages are unavailable for contract claims, but are available for tort claims.
In the case Best Place v. Penn. Am. Insurance Company, the Hawaii Supreme Court defined an insurance company’s good faith obligations.
“There is a legal duty, implied in a first- and third-party insurance contract, that the insurer must act in good faith in dealing with its insured, and a breach of that duty of good faith gives rise to an independent tort cause of action. The breach of the express covenant to pay claims, however, is not the sine qua non for an action for breach of the implied covenant of good faith and fair dealing. The implied covenant is breached, whether the carrier pays the claim or not when its conduct damages the very protection or security which the insured sought to gain by buying insurance. Best Place, Inc. v. Penn Am. Ins. Co. 82 Hawaii 120, 920 P.2d 334 (1996).”
Possible Signs of a Bad Faith Insurance Claim:
- Unreasonable delays in payments.
- Claims are denied (without a reasonable explanation).
- Cancellation of insurance policy after a claim is filed.
- Failure to reply to a filed claim.
- Not complying with insurance industry standards.
- Failure to inform insured party of claim denial.
- False or inaccurate information added to deny a claim.
- Very low settlement is offered without a reasonable explanation.
- Aggressive or coercive methods were used by insurer.
- Insurer does not pay an award in a reasonable amount of time.
If you feel your insurance company has violated its policy agreement or has caused you hardship or harm by failing to abide by state or federal insurance laws, you may have a bad faith insurance claim. Lawyers who handle bad faith insurance claims can help clients obtain punitive damages from insurance companies that have acted in bad faith. These attorneys understand the complex mix of applicable insurance laws and represent the policyholder in either court or an arbitration hearing.
If you feel you may have a bad faith insurance claim, call the Attorneys for Freedom Law Firm – Honolulu at 808-647-2423 today or email us.
Hawai’i Office Address:
1003 Bishop Street, Suite 1260 Pauahi Tower
Honolulu, Hawai’i 96813
Phone: 808-647-2423
