If you have an auto insurance claim against a careless driver who hit you, and their Wawanesa Insurance is mistreating you, then Maison Law can help. If you or a loved one has sustained serious injuries caused by a Wawanesa Insurance policyholder, and you’re not receiving the proper treatment, then our law firm can help you get immediate medical care and the compensation you need. Contact us today for a no-cost, no-obligation consultation to see what legal options are available for your situation.
What is Bad Faith Insurance?
Bad faith insurance refers to an intentionally dishonest or unfair act by the insurance company. This means they failed to meet their legal or contractual obligations, and did not act with the best interest of the policy holder or person filing the claim.
Insurance companies are not required to approve every claim they receive. However, it is their duty to review the merits of each claim and make responsible decisions to handle and process it according to California Law. So, when an insurance company chooses not to settle a claim, even when they could if they acted responsibly, it is considered bad faith. In these scenarios, it is recommended to speak with a Bad Faith Attorney about pursuing a bad faith claim against the insurer.
Steps to Avoid Improper Treatment from Wawanesa Insurance
Unfortunately, policyholders will get taken advantage of by their insurers if they’re not careful. But taking the time to understand how to avoid mistreatment from a major insurer like Wawanesa can save you from a very stressful situation, or let you know when it’s time to consult with a lawyer. The following are actions you should avoid when dealing with a Wawanesa insurance claim:
- Be mindful of giving recorded statements to Wawanesa: recording a statement for your insurer is common, but they may attempt to record you saying something that can damage your claim in the long run. For example, they may get you to say you’re not that hurt, your pain is minimal, or the damage hasn’t changed your life that much. They can take these statements out of context and use them against you in court.
- Avoid accepting early/lowball settlement offers: injuries get worse over time, and the cost of damage done to your life can also grow as the years go by. By accepting an early offer, you eliminate any chance of a doctor or healthcare planner evaluating the long-term financial damage you may face after an injury.
- Don’t allow Wawanesa to reduce the value of your damages: insurance adjusters commonly claim medical costs are unreasonable, and will change the value of your medical bills. They do this by using their “billing expert,” who will almost always find a way to reduce the value of your damages.
- Don’t allow Wawanesa to eliminate vital aspects of your claim: insurance companies will use every trick in the book to avoid paying out. For example, if you claim damages for a head injury that includes several other damages, such as dizziness, depression, or difficulty performing at work, an insurance adjuster may try to eliminate one or all of your additional damages when providing a value to your claim. So, it’s important to make sure all damages are covered.
How to Know What Your Personal Injury Claim is Worth
Before you decide whether or not to settle your personal injury case, it can benefit you to understand how much your personal injury claim is worth. This can help you avoid accepting lowball settlements from the insurance company, as well as calculate what your claim may be worth.
It is recommended to speak to one of our attorneys at Maison Law to fully calculate the value of your claim. The value of the following damages will ultimately determine what your case is worth:
- Present and future medical expenses
- Loss of income, as well as the reduction in your earning capacity you’ve suffered from your injuries
- Cost of living with your injury, such as making your home disability accessible, purchasing a wheelchair or crutches, hiring a nurse or housekeeper
- Damage done to your property during the accident
Other damages also include non-economic damages. These damages do not have an exact monetary cost and are generally calculated based on medical evidence and expert testimony:
- Pain and suffering caused by your injuries
- Stress and anxiety due to the nature of your accident
- Your mental state after a life-changing accident
In addition to non-economic losses, plaintiffs are eligible to request more money for their non-economic damages if they:
- Had a long recovery period
- Required invasive medical treatment, or medical treatments that were ongoing
- Were particularly painful injuries
- Had obvious physical signs of the injury like scars, or loss of a limb
- Contained severe injuries that resulted in permanent physical alterations or disability
How Bad Faith Law in California Protects Injured Victims
Bad faith law is covered under California Insurance Code 1033, which requires insurance companies, like Wawanesa Insurance, to deny or pay for a claim within a reasonable amount of time. This law defines certain acts that qualify as bad faith:
- Unreasonable denial of policy benefits
- Failing to respond or act promptly with respect to a claim
- Attempting to settle claims for an amount that appears unreasonable compared to statements made in written or printed advertising material that accompanied the application for insurance
- Threatening to appeal an arbitration award in an attempt to compel the insured to accept a settlement less than what was awarded
- Advising a claimant not to hire an attorney
- Misleading a claimant as to the legal deadline for filing a claim or initiating a lawsuit
How Insurance Companies Exercise Bad Faith in a Personal Injury Lawsuits
Bad faith in a personal injury lawsuit usually occurs when there’s a “failure to indemnify.” Indemnification is defined as obligating one party, the insurer, to compensate the other party for specific liabilities and losses. If the insurance fails to fulfill this duty, then it constitutes bad faith.
So, in the case of a Personal Injury Lawsuit, a defense’s insurance company could be acting in bad faith by refusing to settle with the injured plaintiff. In certain circumstances, this can put the policyholder’s personal wealth and assets in jeopardy if the case heads to trial.
For example, if the jury rules in the plaintiff’s favor, awarding them $4 million dollars and the defense’s insurance policy is $1 million dollars, the remaining $3 million will come from the defendant’s personal assets. So, this could potentially be considered bad faith if the insurance refused to settle, resulting in the policyholder having to pay millions of dollars.
Proving Bad Faith Against Wawanesa Insurance
To prove that Wawanesa Insurance acted in bad faith is not always straightforward. In order to prove bad faith, you must be able to present the following evidence:
- The Existence of a Valid Insurance Contract: there must be a valid contract between you and Wawanesa Insurance. The contract will outline the terms and conditions you and the insurer have agreed to. So, it is important to understand the terms of the contract and to be able to highlight where a violation occurred.
- Unreasonable Denial of Delay of a Claim: you’ll need to show Wawanesa Insurance denied your claim or delayed processing it without a good reason. This could occur if they ignore evidence that supports your claim, misrepresenting policy language, or applying undue scrutiny to avoid payment.
- Failure to Conduct a Proper Investigation. Insurance companies must perform a thorough investigation of each claim. If Wawanesa Insurance fails to investigate properly or disregards key evidence, then that would be considered bad faith. Evidence of this would be shown through claim denials without providing records of their decision or an investigation.
- Breach of Duty of Good Faith and Fait Dealing: Insurance companies are required by California Law to act in good faith and deal fairly with policyholders. If Wawanesa breaches this duty by acting dishonestly, then you can document their inaccurate statement and hold them accountable for bad faith practices.
Damages You Can Recover from a Bad Faith Lawsuit Against Wawanesa Insurance
In bad faith cases, you can recover three types of damages. These damages include contract damages, extracontractual damages, and punitive damages. Contract damages are damages representing the amount of the claim that was denied plus interest. For instance, if you have a health insurance claim for $50k that was denied, the contract claim is that amount plus 10% each year.
Extracontractual damages are damages to compensate you for any economic, emotional distress, and attorney fees. These damages are to help you recover any type of financial and emotional loss you sustained as a result of the insurer’s bad faith. For example, if you had to borrow money to pay for additional medical care, you can recover interest on that loan. Or if the insurer’s actions forced you into bankruptcy, you can recover the damage to your credit.
Punitive damages are for malicious, fraudulent, or oppressive behavior, according to California Civil Code Section 3294. These are exemplary damages, served to bad faith insurers to set an example to others as the type of conduct that is not tolerated in the state of California. These damages are rare, but can be applied to a bad faith lawsuit if the insurer deliberately concealed relevant information or consciously violated the rights and safety of the insured.
Get Legal Help with Your Wawanesa Insurance Bad Faith Claim
If you or a loved one has sustained injuries in an accident and Wawanesa Insurance has wrongfully denied your claim, delayed payment, or offered an inadequate settlement, the Bad Faith Attorneys at Maison Law can help. We understand how to use the law against insurance giants, and we will not hesitate to file a lawsuit against them or represent you in court until your damages are fully covered.
Don’t wait until it’s too late to take legal action. Contact Maison Law today for a free consultation and case evaluation. Our firm does not require any upfront payments for our services, and we don’t get paid unless we win your case.
