Challenging ‘bad faith’ disability insurance denials

Colorado has laws in place to keep insurance companies from denying or delaying payment of a disability insurance claim for unreasonable justifications. When an insurance company fails to provide disability payments that an injured worker is entitled to, that worker could suffer from high medical bills, accumulating debt, lost wages, and the stress that comes from being in such dire financial and personal circumstances.

Holding bad faith insurance companies accountable

There are a wide variety of practices by insurance companies considered ‘bad faith’ conduct, which includes:

• Relying on unreasonable standards for denying a claim
• Coercive strategies for getting claimants to settle before or during litigation
• Failing to investigate a claim fully according to company procedures
• Intentional misinterpretation or misrepresentation of laws, records and public policies to avoid claim payments

If a court finds an insurance company to be acting in ‘bad faith,’ it can be liable to a claimant for more than just the owed insurance policy payment. A court can rule that the company owes the claimant damages for some of the following categories:

1. Emotional suffering and pain
2. Financial losses
3. Punitive damages
4. Legal fees and penalties
5. Judgments beyond the owed policy payments

Safeguarding your health and future

Laws like the Unfair Claims Settlement Practices Act are set up to protect insurers. Don’t let an unscrupulous company deny you the benefits you’re entitled to. If you or your loved one has been denied coverage by a disability insurance company, you want an attorney experienced in long-term disability claims on your side.