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


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