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


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