In a previous post, we discussed how the failure on the part of an insurance company to fulfill its duties to defend and indemnify may be grounds for an insurance bad faith lawsuit. Specifically, we discussed how aggrieved policyholders can pursue either first-party claims — failing to settle claims in good faith — or third-party claims — failing to settle third-party claims within policy limits in good faith.
Many people in Florida and elsewhere do not question an insurer when it issues a denial of benefits. In many instances, however, insurers will interpret language in the policy to their own benefit. When they do that blindly and ignore their plain responsibilities to their insured customer, the company may be liable to the insured under the principles of bad faith insurance law.
Health insurers are not consumer-oriented protectors in our dog-eat-dog healthcare system of today. In fact, in Florida and elsewhere, some of the greatest heartache and family suffering has been caused by wrongful decisions of health insurers. It is common these days to receive a denial of health insurance coverage based on illogical and irrational reasons. These decisions are so hurtful to consumers that some of them must seek bankruptcy relief while others suffer permanent credit record blemishes for outlandish medical bills that they cannot pay.
In general, insurance companies owe their policyholders the duties to defend and to indemnify, meaning the obligation to provide a legal defense against claims filed by third parties that fall within the scope of the policy and the obligation to make payments to their customers for valid claims, respectively.
When the day finally arrives for a person to take the plunge and purchase a new car after years of driving the same vehicle, they will find that much has changed. These changes aren’t just confined to things like engines, fuel economy and interior features, however, but also safety.
Over the course of 2016, Citizens Property Insurance Corporation has made a series of announcements that could best be described as upbeat. For example, the state-run non-profit indicated early in the year that its catastrophe funds were carrying a balance of close to $17 billion in cash and bonds, such that it was “in the strongest financial position” since its inception back in 2002.
While it can undoubtedly be painful to write out a check once a month, once every six months or once a year to cover an insurance premium, it can nevertheless grant you, the policyholder, much-needed peace of mind. Indeed, you might feel secure knowing that should the unexpected and the unfortunate occur, your best interests will be protected — at least from a financial perspective.
It goes without saying that as soon as Hurricane Matthew was forecast to hit Florida, insurance companies doing business in the state almost immediately began preparing for worst-case scenarios. Indeed, initial projections were showing that certain areas of the Sunshine State could experience catastrophic damage.
While the phones at state-run Citizens Property Insurance Corporation — the insurer of last resort for thousands of Florida property owners who cannot otherwise secure the necessary coverage on the private market — will undoubtedly be ringing off the hook in the coming weeks due to the fallout from Hurricane Matthew, officials want the call volume to be even higher.
Now that Hurricane Matthew has all but exited Florida, continuing to make its way up the Atlantic Coast, people are slowly starting to come out from shelters or return home, eager to assess the fallout from the strongest storm to hit the state in roughly ten years.
