What Constitutes Insurance Bad Faith in Illinois?
Insurance bad faith involves an insurer’s failure to deal fairly with policyholders. Common examples include:
- Unreasonable claim denials – Denying valid claims without proper investigation or justification
- Delayed payments – Unnecessarily prolonging the claims process to pressure settlements
- Lowball settlements – Offering far less than claims are worth
- Failure to investigate – Not properly examining claims before denial
- Misrepresenting policy terms – Claiming coverage doesn’t exist when it does
- Refusing to defend – Failing to provide legal defense when required
- Improper claim handling – Losing documents, missing deadlines, or failing to communicate
Types of Insurance Bad Faith Claims
Bad faith can occur with many types of insurance policies:
- Auto insurance claims – After car accidents, motorcycle crashes, or truck collisions
- Health insurance claims – Denial of medical treatment coverage
- Homeowner’s insurance – Property damage claim disputes
- Disability insurance – Wrongful denial of disability benefits
- Life insurance – Refusal to pay death benefits
- Workers’ compensation – Disputes over workplace injury coverage
- Uninsured/underinsured motorist claims – Your own insurer acting in bad faith
Illinois Insurance Bad Faith Law
Illinois provides multiple avenues for pursuing bad faith insurance claims. Under 215 ILCS 5/155, policyholders can recover additional damages when insurers engage in vexatious and unreasonable delay or denial of claims. The Illinois Insurance Code requires insurers to act in good faith and deal fairly with policyholders.
Remedies for insurance bad faith in Illinois may include:
- The original claim amount owed
- Statutory penalties up to $60,000
- Attorney’s fees and costs
- Interest on delayed payments
- Punitive damages in egregious cases
Best Insurance Bad Faith Lawyers in Chicago
These Chicago law firms have extensive experience fighting insurance companies that act in bad faith:
1. Phillips Law Offices
Phillips Law Offices has decades of experience holding insurance companies accountable for bad faith practices. Their attorneys understand the tactics insurers use to deny and delay claims, and they fight aggressively to secure full compensation for policyholders. The firm handles first-party bad faith claims against your own insurer and third-party claims against at-fault parties’ insurers.
2. Romanucci & Blandin, LLC
This Chicago firm has successfully litigated numerous bad faith insurance cases, recovering millions for clients whose claims were wrongfully denied or undervalued. They have experience with complex coverage disputes and multi-policy claims.
3. Clifford Law Offices
Clifford Law Offices brings substantial resources to insurance bad faith litigation. Their attorneys have handled high-profile cases involving significant coverage disputes and can take on large insurance companies.
4. Power Rogers, LLP
Known for achieving record verdicts, Power Rogers has the experience and resources to challenge insurance company bad faith through trial if necessary. Their track record makes insurers take notice.
5. Salvi, Schostok & Pritchard P.C.
This firm handles insurance disputes across Illinois, including complex bad faith claims. They understand insurance policy language and can identify when companies are misrepresenting coverage.
Signs Your Insurer May Be Acting in Bad Faith
Watch for these warning signs that may indicate bad faith:
- Repeated requests for the same documentation
- Unexplained delays with no communication
- Denial letters citing vague or incorrect policy provisions
- Pressure to accept quick, low settlements
- Misrepresenting what your policy covers
- Failure to provide a written explanation for denial
- Threatening to cancel your policy if you pursue your claim
- Refusing to negotiate in good faith
Compensation in Bad Faith Cases
Insurance bad faith victims may recover:
- Contract damages – The full amount owed under the policy
- Consequential damages – Additional losses caused by the denial or delay
- Statutory penalties – Additional amounts under Illinois law
- Emotional distress damages – In certain circumstances
- Attorney’s fees – Recovery of legal costs
- Punitive damages – To punish particularly egregious conduct
Steps to Take If You Suspect Bad Faith
- Document everything – Keep copies of all communications with your insurer
- Put requests in writing – Create a paper trail for all claim-related matters
- Request written explanations – Ask for detailed denial letters
- Review your policy – Understand what coverage you purchased
- File complaints – Report suspected bad faith to the Illinois Department of Insurance
- Consult an attorney – Get legal advice before accepting any settlement
Official Resources
- Illinois Insurance Code – 215 ILCS 5/155
- Illinois Department of Insurance – File a Complaint
- National Association of Insurance Commissioners
Related: Car Accident Lawyers | Personal Injury Lawyers
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