Kentucky’s Unfair Claims Settlement Act (KRS 304.12-230)
In Kentucky, under Kentucky’s Unfair Claims Settlement Act (KRS 304.12-230) relating to insurance companies, an insurance company may have acted in bad faith if it commits any of the following acts or omissions:
- Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;
- Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;
- Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;
- Refusing to pay claims without conducting a reasonable investigation based upon all available information;
- Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;
- Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;
- Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;
- Attempting to settle a claim for less than the amount to which a reasonable man would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application;
- Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of the insured;
- Making claims payments to insureds or beneficiaries not accompanied by statement setting forth the coverage under which the payments are being made;
- Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;
- Delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;
- Failing to promptly settle claims, where liability has become reasonably clear, under one (1) portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;
- Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;
- Failing to comply with the decision of an independent review entity to provide coverage for a covered person as a result of an external review in accordance with KRS 304.17A-621, 304.17A-623, and 304.17A-625;
- Knowingly and willfully failing to comply with the provisions of KRS 304.17A-714 when collecting claim over-payments from providers; or
- Knowingly and willfully failing to comply with the provisions of KRS 304.17A-708 on resolution of payment errors and retroactive denial of claims.
Examples of Insurance Bad Faith Practices In and Around Louisville, Kentucky
Your own insurance carrier refuses to acknowledge that you even have a claim under your own policy.
A drunk driver wrecked into your car and drove off without stopping and providing their personal and insurance information. At that point, your only choice is to first make a claim under your own insurance policy. Hopefully, you were wise enough to have under-insurance coverage on top of the Kentucky required uninsured motorist coverage. But then your own insurer refuses to acknowledge that the incident fell within the scope of your insurance coverage that you have dutifully paying premiums for. Of course, you still have the right to sue the individual who caused the wreck, but your own insurance carrier may be operating in bad faith in denying your claim. What should you do next? Sound advice is to immediately contact an experienced and competent attorney like Jim Ballinger and his team at Louisville Lawyer, PLLC.
The at-fault driver’s insurer refuses to pay your medical bills after an accident.
You were in a bad car crash in or around Louisville, Kentucky, and it was not your fault. Maybe the negligent driver had been talking or texting on their cell phone when they struck your vehicle, and then they admitted it was their fault. But then their insurance company refuses to pay for your hospital bills, rehab, lost wages, and vehicle damage. What should you do next? Sound advice is to immediately contact an experienced and competent attorney like Jim Ballinger and his team at Louisville Lawyer, PLLC.
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Fighting Back Against Bad Faith Insurance Companies
Insurance companies love accepting premiums, but far too often, look for ways to deny valid claims to keep their coffers full and shareholders fat and happy. However, victims of insurance bad faith often have far more options available to them than they might realize. Jim Ballinger and the attorneys who work with Louisville Lawyer, PLLC, are very competent and experienced and will zealously fight the insurance companies for their bad faith claims practices to get you the compensation you rightfully deserve. Please feel free to email Jim at email@example.com or call (502) 426-3215 for a free consultation. Jim, or one of his team, would also be happy to come to visit you in-person or via zoom to make matters more convenient for meeting with you.