LOS ANGELES INSURANCE BAD FAITH LAW FIRM

LOS ANGELES INSURANCE BAD FAITH LAWYER

Holding Insurance Companies Accountable for Unfair Claim Denials

When you purchase an insurance policy—whether for your home, health, business, or vehicle—you expect your insurer to protect you in times of need. Unfortunately, some insurance companies put profits above policyholders and engage in unjust or unethical practices that leave you without the coverage you deserve. If this happens to you, an MPC insurance bad-faith Attorney can help.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurer fails to deal fairly and honestly with you, the policyholder. In California, contracts between insurers and policyholders include an implied covenant of good faith and fair dealing. When an insurance company violates this covenant—by denying valid claims, unreasonably delaying payment, or otherwise refusing to fulfill its contractual obligations—it can be held liable for bad faith.

EXAMPLES OF BAD FAITH PRACTICES

UNJUST CLAIM DENIAL

Refusing to pay a valid claim without a proper reason or clear evidence.

UNREASONABLE DELAYS

Prolonging the investigation, negotiation, or payment process to wear policyholders down.

LOWBALL SETTLEMENT OFFERS

Proposing a payout that is significantly less than the fair value of your losses.

FAILURE TO INVESTIGATE

Not conducting a prompt or thorough review of the facts, including medical reports or property damage assessments.

MISREPRESENTATION OF POLICY TERMS

Providing inaccurate information about the scope or limits of your coverage.

IMPROPER CANCELLATION

Terminating or rescinding a policy after a claim is filed, often based on alleged misrepresentations that may not be justified.

First-Party vs. Third-Party Claims

Understanding the difference between first-party and third-party claims can help you determine when insurance bad faith has occurred.

First-Party Claims

You file a claim with your own insurance company (e.g., homeowners, auto, health, or disability insurance).
Examples include seeking compensation for fire damage to your property, coverage for medical bills, or reimbursement for stolen items.

Third-Party Claims

Involves a claim made against someone else’s insurance policy.
If you were injured in a car accident by a negligent driver, you would file a claim with the at-fault driver’s insurer.
The at-fault driver’s insurer has an obligation to act in good faith regarding your claim.

Common Types of Insurance Policies Involved

HOMEOWNERS INSURANCE

Covers damages from fires, natural disasters, or theft.

AUTO INSURANCE

Provides coverage for accidents, collisions, and liability issues.

HEALTH INSURANCE

Pays for medical treatments, surgeries, and hospital stays.

DISABILITY INSURANCE

Offers income replacement if you are unable to work.

LIFE INSURANCE

Gives financial protection to beneficiaries in the event of a policyholder’s death.

BUSINESS/COMMERCIAL INSURANCE

Protects businesses from property damage, liability claims, and potential interruptions.

Signs Your Insurer May Be Acting in Bad Faith

If you notice any of these red flags, consult MPC Los Angeles bad-faith insurance attorney immediately.

LACK OF COMMUNICATION: They avoid calls, take too long to respond, or fail to provide clear updates.
UNEXPLAINED DENIAL: They offer a vague reason for denying your claim—or no reason at all.
EXCESSIVE DOCUMENTATION REQUESTS: They request repetitive or irrelevant documents to delay processing.
POLICY CHANGES AFTER FILING: They suddenly revise policy terms or cancel the policy without proper notice.
FAILURE TO DEFEND: Your liability insurer refuses to defend you in a claim covered by your policy.

Legal Remedies for Bad Faith Insurance

When an insurer acts in bad faith, you have the right to seek compensation beyond the original value of your claim.

BREACH OF CONTRACT (POLICY BENEFITS)

This refers to the amount you are legally owed under the insurance policy. It covers what the insurer should have paid you had they handled the claim properly, plus possible interest.

EXTRACONTRACTUAL DAMAGES

These damages go beyond the policy’s limits, compensating you for economic losses, legal expenses, or emotional distress caused by the bad faith conduct.

PUNITIVE DAMAGES

If the insurance company’s conduct is especially malicious or fraudulent, courts may award punitive damages. This is meant to punish the insurer and deter similar behavior in the future.

ATTORNEYS’ FEES AND COURT COSTS

In many cases, you can also seek reimbursement for legal fees and other costs related to fighting the insurance company’s unjust denial or delay.

Why Do You Need MPC Los Angeles Insurance Bad Faith Law Firm

Insurance companies are large corporations with extensive legal resources. Going up against them alone can feel overwhelming. Here is how an experienced bad-faith attorney can help:

POLICY REVIEW & INVESTIGATION

Your lawyer will analyze the policy language, gather relevant documentation, and uncover evidence of bad faith.

NEGOTIATION & ADVOCACY

Insurance adjusters are trained negotiators. Your attorney will protect your interests by demanding fair treatment and maximizing your potential recovery.

LITIGATION SUPPORT

If settlement negotiations fail, an attorney can file a lawsuit and represent you in court, including preparing evidence, expert witness testimony, and trial advocacy.

PROVEN TRACK RECORD

Many insurance bad faith lawyers have won significant settlements and verdicts against major insurers, proving their ability to tackle complex, high-stakes cases.

Steps to Take if You Suspect Bad Faith

DOCUMENT EVERYTHING

Keep copies of all letters, emails, claim forms, and any recorded communication with the insurance company.

REVIEW YOUR POLICY

Keep copies of all letters, emails, claim forms, and any recorded communication with the insurance company.

CONSULT AN ATTORNEY

Speak with a bad-faith insurance attorney for a free case evaluation.

AVOID GIVING EXCESSIVE STATEMENTS

Do not provide recorded statements or sign documents without legal guidance.

STAY PERSISTENT

Insurers might use delay tactics. Continue following up and let your attorney handle communication.

How to Choose the Right Bad Faith Insurance Attorney

RELEVANT EXPERIENCE

Look for attorneys who specialize in insurance law and have a proven history of handling bad faith cases.

RESOURCES & TEAM

Ensure the firm has the financial and investigative resources to challenge major insurance corporations.

CLIENT REVIEWS & TESTIMONIALS

Check online feedback or ask for references to gauge past performance.

WILLINGNESS TO LITIGATE

Some insurers only offer fair settlements when they know you are prepared to go to trial.

PERSONAL CONNECTION

You will share sensitive information about your situation—so choose a lawyer you trust and feel comfortable with.

Frequently Asked Questions (FAQ)

WHAT IF I MADE A MISTAKE ON MY INSURANCE APPLICATION?Anthony K2025-01-30T19:47:48+00:00

MPC LEGAL TEAM

EDGAR MARTIROSYAN

LILIT GHAZARYAN

AZNIV KSACHIKYAN

MELKON TOROSYAN

CONTACT US

for a No Obligation Confidential Consultation

COMPLETE THE FORM BELOW, AND OUR EXPERIENCED ATTORNEYS WILL CONTACT YOU TO DISCUSS YOUR CASE.