Insurance bad faith attorneys litigate cases against insurance companies when the insurer wrongfully denies a claim or seeks to rescind and insurance policy or coverage under the policy. The first type of insurer bad faith that our California insurance lawyers will discuss was publicized perhaps most pervasively in recent years in connection with the debate on health care reform, although the same type of callous insurance industry tactics to reduce insurer liability by wrongful denial of claims and rescission of insurance policies certainly cut across every type of insurance from homeowners insurance, involving bad faith refusals to pay covered losses for fires, floods and earthquakes, life insurance, disability and even business loss insurance claims.
Many poignant testimonials were discussed in the health care debate in which the health insurance industry’s strategies to increase profits by denying covered medical insurance claims or by rescinding the health insurance policies where it appeared that the insured was seriously ill or would require long term treatment. It had become a cost/benefit analysis for the insurance companies, and where the policy holder became seriously ill so that the cost of paying the insured’s claims substantially exceeded the monthly payments expected from the insured, the insurance companies had internal policies to deny the claims and rescind the policies. One common insurance company tactic that has been common knowledge to our California insurance bad faith lawyers, and which came out in the health insurance debate, was If the claimant was seriously ill, the insurance companies would have teams of employees who would look back to the original insurance application and then conduct investigations into the claimants life medical history to find the most insignificant and often totally unrelated omission in an answer to a application question to “justify” the rescission of the insurance contract. A claimant may have contracted cancer, but the insurance company will assert that the insured “failed to disclose” that he or she had gone to a hospital years ago for a toe infection and on that basis refuse to pay the claimant’s substantial medical expense for the cancer treatment.
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