Legal Question in Insurance Law in California

Re: bad faith claim on insurance policy

Did you get a disability policy, or just the "promotional"

brochure which the lender/mortgage loan broker gave

you? Both are needed to determine just what is

a "disability" under the actual policy. It is

absolutely necessary to have all of the original

paperwork BEFORE you can decide what you might do.

What is a disability to you may not qualify under

the policy, if the provisions are enforceable in

California.

The paperwork must be carefully reviewed, since

this type of insurance is statutorily regulated -

(like credit life insurance.)

The lender itself may be liable since it acts as

the agent for the insurer, and the same principle

may render the mortgage broker responsible.

If you have a worker's comp lawyer, have him get

you a copy of any award you have obtained - temporary

or permanent. You could then write to the insurer

(to the claims adjuster who wrote you the denial)

with a copy and demand immediate payment of benefits.

If you only got an oral denial, write a letter and

demand a written response to your demand for benefits.

Do this all by letter - do not discuss your claims

on the phone.

If your benefits/damages are under $5,000, you can

sue immediately in small claims - but after you

have the demand and denial in writing.

Re: bad faith claim on insurance policy

Hello:

From the facts of your letter, you definately have a good "bad faith" claim against your insuance company. You should definately contact an attorney who specializes in insurer's bad faith.

If you live in Santa Clara County, I would be interested in speaking with you at 408-295-8282. You may call me just for more information on how to select a good lawyer in your area.

Don't wait, the 1 year statute of limitatiions begins to run from any date the company first denied coverage.

Steve Gibbs

San Jose

Re: bad faith claim on insurance policy

You can sue the insurance company for breach of contract and for bad faith. You need to find an attorney who specializes in insurance coverage issues and have him review the policy language to make sure that you have the case.