A “Sample Bad Faith Letter To Insurance Company” is a formal complaint. It tells an insurance company they aren’t honoring your policy. You might need this letter if your claim was unfairly denied. Maybe they delayed payment without a good reason.
Dealing with insurance companies can be tough. Getting them to pay what they owe you can be even tougher. That’s why we’re here to help.
This article provides sample letters. Use these samples to craft your own “Bad Faith Letter”. We aim to make it easier for you to communicate with your insurance company. Let’s get started with the samples!
Sample Bad Faith Letter To Insurance Company
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Insurance Company Name]
[Insurance Company Address]
Re: Claim Number [Claim Number] – Policy Number [Policy Number] – Bad Faith Claim
Dear [Insurance Company Representative Name],
This letter serves as formal notification that I am making a claim against [Insurance Company Name] for bad faith in the handling of my insurance claim, number [Claim Number], under policy number [Policy Number].
On [Date of Incident], I suffered a loss due to [Brief Description of Loss]. I promptly filed a claim with your company. To date, your handling of this claim has been unacceptable and demonstrates bad faith.
Specifically, bad faith actions include:
[Clearly List Specific Examples of Bad Faith Conduct – e.g., unreasonable delays in processing the claim, failure to properly investigate the claim, denial of a valid claim without proper justification, failure to communicate effectively, offering a settlement amount that is unreasonably low].
These actions constitute a clear breach of your duty of good faith and fair dealing. As a result of your bad faith, I have suffered the following damages: [List Specific Damages – e.g., financial losses, emotional distress, property damage, additional expenses incurred].
I demand that you immediately reconsider my claim and take steps to rectify your bad faith conduct. This includes a fair and reasonable settlement of my claim, which adequately compensates me for my losses.
If I do not receive a satisfactory response within [Number] days, I will be forced to pursue all available legal remedies, including filing a lawsuit against [Insurance Company Name] for breach of contract, bad faith, and any other applicable causes of action. I will also report your conduct to the appropriate regulatory agencies.
I expect a prompt and professional response to this letter.
Sincerely,
[Your Signature]
How to Write Sample Bad Faith Letter To Insurance Company
Subject Line: Concise Intent
- Clearly state the purpose: “Notice of Bad Faith Claim – Policy #[Policy Number], Claim #[Claim Number]”
- This immediate clarity prevents misinterpretation and sets a peremptory tone.
Salutation: Formal Directness
- Address a specific individual: “Dear Mr./Ms. [Claims Adjuster’s Last Name],”
- Avoid generic greetings; a personalized address conveys seriousness.
Introduction: Recounting the Genesis
- Briefly reiterate the policy details: type, number, and date of the insurable event.
- Summarize the claim submission date and any subsequent correspondence.
- Expound upon the frustration arising from undue delays, recalcitrance, or dereliction of duty.
Body Paragraph 1: Catalog of Infractions
- Enumerated list of bad faith actions:
- Unreasonable delays in claim processing.
- Inadequate investigation or absence thereof.
- Misrepresentation of policy terms.
- Lowball settlement offers or outright denial without valid justification.
- Each point should cite specific dates, communications, or policy clauses.
Body Paragraph 2: Substantiating Damages
- Detail the consequential damages incurred due to the insurer’s malfeasance.
- Include specific monetary losses: lost wages, medical expenses, property damage, etc.
- Outline intangible damages, such as emotional distress or marred credit rating, where applicable.
- Quantify damages; provide precise figures whenever possible to bolster your claim’s veracity.
Demand and Ultimatum: Setting the Stage for Action
- Clearly articulate the desired resolution: payment of the claim in full, rescission of denial, etc.
- Specify a reasonable timeframe for compliance, e.g., “within [Number] days of this letter.”
- Firmly state your intention to pursue legal remedies should the insurer continue its obdurate stance.
Closing: Formal and Assertive
- Conclude with a professional but assertive closing: “Sincerely,” or “Respectfully,” (if aiming for a less combative tone).
- Include your full name, address, phone number, and email address.
- Consider sending the letter via certified mail with return receipt requested for incontrovertible proof of delivery.
Frequently Asked Questions: Bad Faith Letter to Insurance Company
Navigating insurance claims can be complex, and sometimes, insurers act in bad faith. This FAQ provides essential information about bad faith letters and how they can protect your rights.
What is a “bad faith” letter to an insurance company?
A bad faith letter formally notifies an insurance company that you believe they are handling your claim unfairly or unlawfully and that you intend to pursue legal action if the situation is not resolved.
When should I send a bad faith letter?
You should send a bad faith letter after you have evidence that the insurance company has acted unfairly, such as unreasonably denying your claim, delaying payment without justification, or misrepresenting policy terms.
What information should be included in a bad faith letter?
A bad faith letter should include your policy number, claim number, a detailed account of the insurer’s actions that constitute bad faith, the specific damages you have incurred, and a clear demand for resolution.
Will sending a bad faith letter guarantee a favorable outcome?
No, sending a bad faith letter does not guarantee a favorable outcome, but it can serve as a formal record of your grievances and may encourage the insurance company to reassess their position before potential litigation.
Should I consult with an attorney before sending a bad faith letter?
Yes, it is highly recommended to consult with an attorney experienced in insurance law before sending a bad faith letter. They can help you assess the merits of your claim and ensure the letter is legally sound.
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