Bad Faith Insurance Claims

Web Admin - Friday, October 23, 2015

denied insurance claim, Crystal Lake insurance dispute attorney, bad faith insurance claimsIn some instances when a claim is made on an insurance policy, an insured may believe that the insurer has acted in bad faith in settling that claim. Bad faith may occur through a delay in settling an insurance claim as well as the outright denial of the claim. An insurance company that acts in bad faith in the settlement of a claim may be forced to pay the insured for those actions. 

Claims under the Insurance Code 

Under the Illinois Insurance Code (§155), it is possible to recover a statutory penalty, attorney’s fees, and other costs if an insurer fails to fulfill its obligations in an unreasonable manner after a claim is made. 

Specifically, an insured must prove that there was a delay in settling the claim that is vexatious and unreasonable. Determining if the delay is vexatious and unreasonable requires an examination of the totality of the circumstances. Some of the factors that are considered include the attitude of the insurer, whether the insured had to file a lawsuit to recover, and whether the insured was deprived of his or her property for a period of time. 

The amount that may be recovered as a penalty under §155 violations cannot exceed any of the following: 

- Sixty percent of the amount which the court or jury finds the insured is entitled to recover against the insurance company;

- $60,000; and

- The excess of the amount that the court or jury finds the insured is entitled to recover, exclusive of costs, over the amount that the insurance company offered to pay to settle the claim before the action. 

The primary defense to a bad faith claim is that there is a bona fide dispute as to whether a policy provides coverage for the claim. If a bona fide dispute exists, denying or delaying in the handling of the claim is not considered a violation. Further, it has been held in Illinois that conduct of insurers is also vexatious and unreasonable when the insurer presents a legitimate policy defense, a genuine legal or factual issue as to coverage exists, or the insurer takes a reasonable legal position based on an area of law that is unsettled. 

Action that Results in a Violation of §155 

Conduct that leads to a violation of the duty of good faith and fair dealing includes, but is not limited to, the following: 

- Knowingly misrepresenting relevant facts or insurance policy provisions;Not maintaining prompt and regular communication with the insured;

- Refusing to pay a claim (either in whole or in part) that the insurer acknowledges as being due;

- Settling a claim for less than what it is actually worth; and

- Failing to properly investigate a claim. 

Insurance Dispute Attorneys 

If you believe that your insurance claim has been delayed or denied in bad faith, it is important to reach out to an experienced Crystal Lake insurance dispute attorney. Our firm represents individuals in communities such as Schaumburg, Crystal Lake, Palatine, Des Plaines, Buffalo Grove, Rolling Meadows, Barrington, Arlington Heights, Inverness, and Deer Park. 

Ken ApicellaAbout the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.



Recent Posts


llinois Real Estate Lawyers Association Illinois car accident attorney Des Plaines drug crimes lawyer insurance claim dispute Des Plaines personal injury attorney mass shooting Illinois lawyer Illinois red light cameras Des Plaines DUI attorney living trust benefits personal injury attorney criminal record murder trusts creditors motorcycle accident Deer Park medical malpractice attorney advance healthcare directive civil rights violation involuntary manslaughter Illinois insurance claim dispute lawyers Illinois insurance lawyer Long Grove real estate lawyer insurance negligence Illinois insurance claims lawyers deadly crashes wills and trusts Schaumburg real estate lawyer DUI penalities Des Plaines motorcycle accident attorney Arlington Heights personal injury attorney natural gas explosion trauma after an accident Schaumburg medical malpractice lawyer Schaumburg civil litigation attorney Illinois DUI attorney Schaumburg drug defense lawyer Barrington estate planning lawyer Barrington drug crime attorney slip and fall accidents Inverness DUI lawyer reckless homicide capital gains tax boating accidents bike accident Policy Cancellation employment contract Crystal Lake business law attorneys Federal Food Drug and Cosmetic Act TBI new real estate form Transfer on Death Instrument Arlington Heights wills and trusts attorneys denied insurance claim trucking accidents pregnant women estate attorney Illinois traffic attorney Illinois employment law attorneys Rolling Meadows Attorney ken apicella pet bites employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Jay Andrew Rolling Meadows accident lawyer jet ski accidents Des Plaines medical malpractice attorney Illinois speeding lawyer Arlington Heights real estate lawyer Mt Prospect Attorney Des Plaines injury law firm slip and fall senior citizens Barrington Traffic Lawyer Arlington Heights employment attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, Des Plaines collections attorney low-ball insurance settlement Schaumburg estate planning attorney Chicago employment lawyer college kids overtime pay special needs trust dog bites foreclosed rental property comp time Illinois corporate lawyer liability claims Des Plaines Traffic Lawyer Illinois boating accident lawyer drug crime Palatine punch death Crystal Lake medical malpractice law firm life insurance claims federal crimes IRELA Illinois small business drug possession Arlington Heights trucking lawyer underfunded trust Crystal Lake estate planning lawyer investment property real estate attorney Rolling Meadows drug defense attorney insurance claim denial agent Crystal Lake traffic lawyer Illinois civil litigation lawyer Illinois jet ski accident lawyer Barrington boating accident attorney Inverness insurance attorney dram shop law Schaumburg criminal attorney compensatory time Des Plaines civil attorney Barrington employment law firm Des Plaines criminal attorney license Illinois wrongful termination lawyer Attorney Ken Apicella motorcycle accident lawyer Deer Park DUI lawyer pedestrian-automobile accident personal injury problem employees Mount Prospect elder law attorney license reinstatement trucking accident lawyers Rolling Meadows DUI lawyer criminal law Schaumburg wrongful death attorney changes to mortgage law Long Grove real estate attorney Crystal Lake will lawyer estate planning Schaumburg estate attorney BAIID insurance agent negligence rollover accidents medication errors operating agreements estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, wills speeding car accident lawyer traffic laws hit and run accident medical malpractice claims employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys head on collisions Palatine traffic accidents Crystal Lake car accident attorney startup company Rolling Meadows severance agreements power of attorney personal injury accidents Illinois insurance disputes real estate leasing Crystal lake insurance dispute attorney Deer Park personal injury lawyer income distribution deducation workers compensation Crystal Lake medical malpractice attorneys Rolling Meadows real estate attorney insurance claims controlled substance Self-Directed IRA Accounts Arlington Heights traffic attorney medical malpractice Chicago employment attorney defective products lawyer insurance dispute rent to own real estate contracts DUI attorney distracted driving accidents insurance claim dispute attorney Colin Gilbert construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation ObamaCare Buffalo Grove employment lawyer Illinois Sales Representative Act traffic deaths wrongful termination Illinois pet lawyer insurance denials cell phone tower data suspended license Rolling Meadows medical malpractice lawyers Kenilworth estate planning attorneys Crystal Lake criminal defense attorney criminal defense Inverness personal injury attorney Palatine civil attorney Crystal Lake injury attorney FMLA bicycle dooring accidents Buffalo Grove criminal defense lawyer estate planning trusts Buffalo Grove car accident lawyer Schaumburg Attorney vacation home fines personal injury law firm Illinois Rolling Meadows employment law attorney traffic offenses taxes digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers estate planning lawyer residential real estate Deer Park traffic accident attorney rest breaks Chicago traffic lawyer Barrington personal injury lawyer blended families boating under the influence Rolling Meadows insurance attorney job lawyers field sobriety test traumatic brain injuries preventing accidents commercial leasing clemency Class A misdemeanor pedestrian injuries, pedestrian fatality insurance claim denials civil litigation workplace sexual harassment Deer Park employment law attorney Barrington personal injury attorney LLCs Arlington Heights wills and trusts attorney back injuries Illinois medical malpractice lawyers in terrorem provision Rolling Meadows estate planning attorney Arlington Heights pedestrian accidents Legal Info insurance adjusters fault based insurance spinal cord injuries Buffalo Grove traffic lawyers Inverness accident lawyer ACA real estate zoning landlord privacy independent contractor Barrington attorney Palatine business attorney denied insurance claims Rolling Meadows tax attorney Illinois employment attorneys South Barrington real estate lawyer estate tax Illinois employee rights attorney. Landlord Tenant Ordinance Inverness civil lawyer child safety Schaumburg estate planning lawyer Illinois estate planning attorney medical malpractice compensation traffic accidents bad faith insurance claims Illinois personal injury attorney pizza emoji no contest clauses wage theft elder law Inverness traffic law firm Illinois trucking safety insurance disputes Schaumburg employment law attorneys rollover car crashes Barrington estate planning attorney icy parking lots Chicago lawyer medical research Palatine traffic lawyer Rolling Meadows Traffic Lawyer Deer Park criminal attorney fatal car accidents Illinois medical malpractice claim drug crimes Crystal Lake insurance lawyer Illinois personal injury lawyer Palatine civil litigation lawyer Inverness estate planning lawyer Inverness real estate lawyer Illinois employment law attorney Arlington Heights Attorney preventable medical errors Illinois Transfer on Death Instrument Inverness real estate attorney estate planning attorney employment attorney fiduciary rule delay Palatine corporate attorney Illinois employment lawyer driving Chicago attorney Affordable Care Act Palatine personal injury lawyer Detainer Actions real estate attorneys workers compensation benefits employee rights Retaliatory Discharge insurance dispute attorney Barrington civil litigation attorney Illinois traffic attorneys digital assets texting while driving Schaumburg criminal law attorney insurance claim delay Illinois construction accident attorney Illinois injury lawyer Palatine employment law lawyer IRA trust transfer probate fees modern family estate planning Barrington business law firm filing a medical malpractice claim employment law hiring employees food poisoning products liability Rolling Meadows personal injury lawyers condo association crossover accidents Illinois insurance claim dispute lawyer Palatine workers compensation lawyer Illinois wills and trusts attorneys dynasty trusts Illinois tax attorney Schaumburg employment attorney Palatine Attorney blood alcohol content Illinois workers compensation lawyer living wills Fair Labor Standards Act life insurance lawyer POA insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys bicycle accidents internet Illinois elder law attorney elder abuse car accident lawyers civil litigation attorney Deer Park motorcycle accident lawyer South Barrington real estate attorney Kenilworth estate planning attorney trustee anesthesia errors holiday statistics premises liability BUI Barrington criminal defense lawyer Chicago corporate attorney DUI defense car accident caregiver employee discrimination digital evidence Arlington Heights medical malpractice lawyer financial advisors GM ignition switches automated cars Barrington real estate lawyer Crystal Lake employment attorney Illinois workers compensation attorney Illinois medical malpractice attorney living trust vs will foreclosure digital information small business Illinois personal injury auto accidents Illinois LLC creation Illinois employment law Deer Park real estate law firm car crashes Illinois estate planning Illinois Human Rights Act Arlington Heights criminal lawyer Illinois living will trench injuries Illinois insurance claim attorney attorney fees Illinois workplace lawyer Arlington Heights Traffic Lawyer product liability Palatine construction attorney work unions CAM trust payments Arlington Heights TBI attorney Rolling Meadows probate lawyer Illinois trusts attorney marijuana crimes attorney drugs Super Mario Palatine injury attorney Mount Prospect wills and trusts lawyers Crystal Lake personal injury lawyer Crystal Lake employment lawyer Rolling Meadows personal injury attorney Rolling Meadows insurance lawyer paid sick leave probate claims process construction accidents Schaumburg traffic lawyer forming a corporation in Illinois Illinois pedestrian accident attorney Palatine drug lawyer Arlington Heights lawyer Illinois insurance dispute lawyers Buffalo Grove real estate attorney cell phone Des Plaines insurance attorney Rolling Meadows criminal lawyer Des Plaines personal injury lawyer license revocation Rolling Meadows litigation lawyer DUI murder charges Des Plaines real estate lawyer Home Sale Contingencies Palatine estate planning lawyer Illinois real estate lawyer landlord tenant law mortgage cell phone accidents estate plan Illinois Workers’ Compensation Commission loopholes Palatine law firm Arlington Heights employment law attorneys Arlington Heights accident attorney Arlington Heights car crash attorneys Rolling Meadows marijuana attorney DNR medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers disability benefits Arlington Heights wills and trusts lawyers Palatine real estate lawyer rumble strips employment law, Illinois employment laws Schaumburg personal injury lawyer Rolling Meadows corporate lawyer Des Plaines accident attorney drunk driving home inspection lawyer Schaumburg insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Rolling Meadows employment attorney accidental death benefits power of attorney for healthcare denial of life insurance first degree murder Des Plaines guardianship attorney Crystal Lake tax lawyer Barrington Illinois estate planning lawyer brain injury Illinois Probate Act of 1975 unpaid overtime breach of contract pain and suffering Joliet general practice lawyers traffic crimes underinsured motorist Forcible Entry Illinois motorcycle accident lawyer probate Do Not Resuscitate Palatine probate lawyer Illinois criminal defense attorney Whistleblower Claims Palatine corporate law attorneys Inverness elder law lawyer Illinois wills and trusts real estate distracted driving accident victims unauthorized overtime sexual harassment right to work Buffalo Grove law firm Palatine elder law attorney Crystal Lake law firm personal injury claim social media after death Illinois real estate workers comp underage DUI Inverness probate lawyer Rolling Meadows traffic law firm Food and Drug Administration's Food Safety Modernization Act healthcare personal injury lawyer golf accidents license suspension Des Plaines claims law firm Illinois insurance attorney Palatine criminal defense lawyer jet ski life insurance probate lawyer employment lawyer spinal cord injury Des Plaines personal injury lawyers Illinois Smoke Detector Act FSLA institutional trustee Des Plaines real estate attorney Illinois registered agent Crystal Lake accident attorney appealing an insurance claim whistleblower protections Rolling Meadows boating crash lawyer Arlington Heights estate planning attorney Barrington injury attorney Rolling Meadows criminal attorney Des Plaines tax law firm Chicago car accident lawyer Buffalo Grove injury lawyer Illinois traffic accident lawyer Crystal Lake civil litigation lawyer Illinois collections attorney Rolling Meadows traffic attorney Employment Discrimination Law Crystal Lake pet attorney boating DUI minimum wage Barrington criminal lawyer Mount Prospect real estate lawyer Arlington Heights wills and trusts lawyer Thanksgiving Buffalo Grove probate lawyer unpaid assessment car crash federal regulations for LLCs loss of consortium unfunded trust Chicago will attorney pedestrian accidents Rolling Meadows business lawyer Barrington employment law attorney Inverness injury lawyer consent to a search defective products Crystal Lake medical malpractice lawyer Barrington employment attorney Illinois driving without license nursing home negligence commercial real estate Buffalo Grove personal injury lawyer tax attorney Arlington Heights tax lawyer medical marijuana PTSD Chicago insurance claim attorneys healthcare claims Deer Park traffic lawyer Illinois job attorney insurance claim Buffalo Grove corporate attorney Exclusions Illinois personal injury lawyers Palatine trusts lawyer dealing with problem employees estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Schaumburg construction accident lawyer Chicago estate planning Crystal Lake employment law attorney Schaumburg corporate attorney Riverwoods estate planning lawyer drunk driving statistics condo Barrington litigation attorney Illinois bicycle safety irrevocable trust Colin H. Gilbert Barrington medical malpractice lawyers liens Arlington Heights injury attorney Illinois mortgages real estate contract Chicago estate planning lawyer murder defense Illinois rollover accident lawyers Illinois workplace discrimination attorney DMV wrongful death uninsured motorist owner responsibility Crystal Lake traffic attorney traumatic brain injury DGAA Illinois law probate process personal injury claims manufacturing Crystal Lake pedestrian accident lawyer Crystal Lake bike accident lawyer Deer Park workers compensation lawyer BAC wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace School Visitation Rights Act Buffalo Grove personal injury attorney Deer Park accident attorney Rolling Meadows insurance dispute lawyers, insurance dispute privacy laws Kenilworth estate planning lawyer Chicago will attorney, social media platforms, Illinois estate planning lawyer, traffic violations defense Inverness corporate attorney traffic tickets Chicago biking tips Schaumburg personal injury lawyers commercial leases Long Grove estate planning attorneys Illinois business law atorneys Illinois defective products attorney health insurance dispute Schaumburg insurance lawyers Home Remodeling Repair Act deed transfer sexual images Chicago insurance law firm Illinois estate planning law firm Schaumburg personal injury attorney IRS Rolling Meadows car accident lawyers liability Illinois traffic ticket lawyer fiduciary rule Illinois employment law firm living trust Palatine employment lawyer caretaker rights criminal real estate closing Illinois attorney meal breaks personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys breathalyzer test Arlington Heights car accident lawyer Illinois medical malpractice case traffic violations Long Grove estate planning attorney Palatine employment attorney life insurance policy Crystal Lake car accident lawyer Illinois business lawyer Illinois Wage Payment and Collection Act swimming pools pet law Barrington workers compensation attorney Long Grove wills and trusts attorneys insurance attorney Schaumburg elder law lawyer Schaumburg injury lawyer natural gas Arlington Heights personal injury lawyer pedestrian accident revenge porn expungement Buffalo Grove medical malpractice lawyers Rolling Meadows employment law attorneys marijuana texting and driving Crystal Lake personal injury attorney Illinois home inspection Chicago trucking accident attorney probate claims surgical mistakes drug crimes lawyer truck collisions installment contracts Des Plaines drug lawyer homestead rights car collision car accidents eluding a police officer sole proprietorship Illinois will lawyer estate planning for college students Arlington Heights insurance attorney hands free device Rolling Meadows personal injury lawyer overtime violations employees gift taxes Rolling Meadows insurance dispute lawyers Buffalo Grove insurance claim dispute lawyers Des Plaines pet law attorney insurance denial appeals Illinois employment laws IRA benefits Family Medical Leave Act Illinois probate lawyer Buffalo Grove traffic attorney Schaumburg car accident attorney Long Grove estate planning Schaumburg probate attorney Palatine insurance lawyer employee misclassification vacation home gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys business litigation insurance agents car crash injuries real estate lawyer Liquor Control Act Illinois traffic laws Fourth of July corporate law