Insurance Company Bad Faith
Has your insurance company acted in bad faith in relation to your insurance claim?
In Illinois, when an insured pays for an insurance policy with an insurance carrier, there are several rights and obligations that are established. Not only is the insurance company contractually obligated to provide the coverages as outlined in the policy, but the insurance company is also required to adhere to the statutory requirements imposed by Section 155 of the Illinois Insurance Code (215 ILCS 5/155) (“Section 155”).
Section 155 is often referred to as the insurance company “bad faith” statute in Illinois. The statute allows policyholders to recover extra-contractual damages, attorney’s fees and other damages, from their insurance company for handling an insurance claim in bad faith.
Section 155 states the following in relevant parts:
“(1) In an action by or against a company wherein there is in issue the liability of a company on a policy or policies of insurance or the amount of the loss payable thereunder, or for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney fees, other costs, plus an amount not to exceed one of the following amounts:
(a) 60% of the amount which the court or jury finds such party is entitled to recover against the company, exclusive of all costs;
(b) $60,000.00;
(c) the excess of the amount which the court or jury finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.” See 215 ILCS 5/155.
In sum, if an insurance company delays the settlement of a claim in a manner in which the court deems to be “vexatious and unreasonable,” then an insured can be awarded not only their actual damages as provided for in their policy, but also attorney’s fees, costs, and statutory penalties up to $60,000.00. Id. Section 155 assists in leveling the playing field when insureds have disputes against their insurers that have exponentially more resources and experience in handling the complexities that are inherent in insurance claims.
Whether or not an insurance company has delayed the settlement of a claim in a manner that is “vexatious and unreasonable” depends on the totality of the circumstances, and other factors outlined in relevant case law. Skilled attorneys that are experienced in this area of the law know how to build a bad faith case, and maximize the likelihood of a favorable outcome for the insured.
The attorneys at McCann Law Firm have developed a reputation for working with public adjusters, contractors, engineers, appraisers, and other professionals in the insurance industry for pursuing claims against insurance companies for acting in bad faith. We also work with the Illinois Department of Insurance to ensure insurers acting in bad faith are held to account.
If you feel that your insurance company is acting in bad faith by delaying your claim in a “vexatious and unreasonable” manner, contact McCann Law Firm today to speak with an experienced professional who will fight tirelessly for you against your insurance company. You paid for your policy, so you are entitled to a timely settlement that includes all coverages outlined in your policy.
