What are the consequences when an insurance company denies or terminates my benefits in bad faith?
A. When an insurance company unreasonably denied or terminates a claim, it may be forced to pay what it owes from the past (plus interest); what it owes in the future; payment for emotional distress; some attorneys’ fees; other costs and expenses; and, if the requisite intent is present, punitive damages. Q. What important steps should I follow when filing a claim? A. (1) Before filing a claim, reread your policy, carefully. (2) Put a copy of all of your correspondence with the insurance company in your insurance file or drawer. Take notes of conversations, including the name, date and substance of each conversation. If representations or promises are made, it helps to put them in writing and send a polite confirming letter. (3) Do not exaggerate anything. Be completely truthful at all times. Maintain your duty and cooperate with their investigation, but also remember that they cannot probe into every crevice of your life. (4) Answer questions carefully. For example, there is a big dif
