Insurance Bad Faith

After years of paying insurance premiums, individuals expect their carriers to provide timely service following an accident.

Unfortunately, insurance companies often delay, devalue or deny a claim to protect their bottom line. When this happens, though, it is likely that the insurance company has acted in bad faith.

If you or a loved one feels mistreated by an insurance company, it is wise to seek the counsel of an experienced attorney. At Rieders, Travis, Dohrmann, Mowrey, Humphrey & Waters, we have the legal knowledge and experience to carefully evaluate a coverage policy and explain your rights. Your insurance company must fully investigate your accident before denying your claim. Contact our firm to discuss your unique situation in greater detail.

Holding Insurance Carriers Responsible For Their Actions

Insurance companies must act in good faith toward their insureds. When an insurance company acts in bad faith to somebody for whom it has written insurance, the insured may bring a bad faith action. There are certain legal requirements for this statutory remedy. Further, a body of case law has evolved that lawyers need to be familiar with when they bring bad faith cases. In some situations, it may be possible for a party to receive an assignment of bad faith rights from the insured. For example, if someone is seriously injured in an automobile accident and the tortfeasor’s insurance company refuses to defend, there may be times when the injured party would take an assignment of bad faith rights. This is an unusual situation, but one that, depending upon the circumstances, may be appropriate. It is important that a lawyer have knowledge with respect to bad faith cases, the damage and the remedies available. Bad faith cases are handled differently, in many respects, than ordinary litigation.

Frequently Asked Questions

Our firm’s approach to insurance bad faith is rooted in the same rigorous preparation we bring to our nationally recognized medical malpractice and personal injury work. In fact, our own Cliff Rieders literally wrote the book on insurance issues that other lawyers and judges use across the commonwealth. Below are some of the questions we hear most often.

What qualifies as insurance bad faith in Pennsylvania?

Under Pennsylvania law (specifically 42 Pa. C.S.A. § 8371), bad faith occurs when an insurer lacks a reasonable basis for denying benefits and knows or recklessly disregards its lack of a reasonable basis. This goes beyond a simple mistake. It includes inadequate investigations, intentional misinterpretations of policy language and failure to communicate honestly with the policyholder.

Can I sue my insurance company for delaying my claim in Pennsylvania?

Yes. In Pennsylvania, an “unreasonable delay” can constitute bad faith. While insurers are allowed time to investigate, they cannot use administrative “red tape” or circular documentation requests to stall a legitimate payout. If a delay is used as a tactic to pressure you into a lowball settlement, the company may be held liable.

What’s the difference between a denied claim and a bad faith claim?

A denied claim is a disagreement over coverage – the insurer may believe an exclusion applies. A bad faith claim, however, focuses on the behavior and intent of the insurance company. If the denial was made without a fair investigation or in blatant disregard of the facts, it moves from a standard contract dispute to a bad faith tort.

What damages can I recover in a Pennsylvania insurance bad faith case?

Pennsylvania’s statute is designed to punish and deter insurance misconduct. If successful, the court may award:

• Interest on the original claim (at the prime rate plus 3%)
• Court costs and attorney fees, ensuring the insurer, not the victim, pays for the litigation
• Punitive damages, which can be substantial and are intended to penalize the company for egregious behavior

How long do I have to file an insurance bad faith lawsuit in Pennsylvania?

In Pennsylvania, the statute of limitations for a statutory bad faith claim is two years. This clock generally begins to tick when the insurer first provides clear notice of its unreasonable denial or engages in the bad faith act. Because these timelines are strict, early consultation with a qualified lawyer is essential.

Contact A Skilled Bad Faith Insurance Law Firm

The law firm of Rieders, Travis, Dohrmann, Mowrey, Humphrey & Waters can be reached by calling 570-796-7613 or completing our convenient contact form. We can explain how Pennsylvania and federal law apply to your situation and help you understand your options for moving forward.

Attorney Cliff Rieders

Cliff Rieders is a board-certified trial lawyer by the National Board of Trial Advocacy, practicing personal injury law. A large part of Cliff’s practice are serious personal injury matters involving vehicles, trucks, medical and hospital malpractice, products liability claims involving personal injury, and multi-district litigation including cases related to pharmaceuticals, vitamin supplements, and medical devices. He is admitted to several state and federal courts, as well as the Supreme Court of the United States. He is the past regional president of the Federal Bar Association and is a life member of the distinguished American Law Institute, which promulgates proposed rules adopted by many state courts. He is a past president of the Pennsylvania Association for Justice, formerly the Pennsylvania Trial Lawyers Association. As a founder of the Pennsylvania Patient Safety Authority, he served on the board for 15 years.

Not only has Rieders held many highly esteemed leadership positions, but he also authored legislation related to the Patient Safety Authority and the Mcare Act, which governs medical and hospital liability actions in Pennsylvania. He authored texts upon which both practitioners and judges rely, including Pennsylvania Malpractice Laws and Forms, and Financial Responsibility Law Issues in Pennsylvania, the latter governing auto and truck collisions in Pennsylvania. In addition, he wrote several books on the practice of law in Pennsylvania regarding wrongful death and survivor actions, insurance bad faith, legal malpractice claims and worker rights, among others. He also serves as a resource to practitioners as a regular speaker for Celesq, an arm of the world’s largest legal publisher, Thomson Reuters West publishing.

As recognition of his wide range of contributions to his profession and of his dedication to protecting the rights of his clients, he received numerous awards, among them the George F. Douglas Amicus Curiae Award, the Milton D. Rosenberg Award, the B’nai B’rith Justice Award and awards of recognition from the Pennsylvania Association for Justice. [ Attorney Bio ]