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


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