OVERVIEW

Insurance companies have a "good faith" duty to treat their customers fairly when a claim is presented. This includes thoroughly investigating the claim, considering all reasons and circumstances that might support the claim, adjusting the claim within a reasonable amount of time.

An insurance policy is a contract between the insurer and the insured. An insurance company that refuses to pay a claim that should be paid, offers to settle a claim for less than it knows the claim is worth, or denies a claim without adequate investigation may be guilty of acting in bad faith.

Insurance companies have a "good faith" duty to treat their customers fairly when a claim is presented. This includes thoroughly investigating the claim and adjusting it in a timely manner. An insurance policy is a contract between the insurer and the insured. An insurance company that refuses to pay a legitimate claim, denies a claim without adequate investigation or offers to settle a claim for less than it is worth may be guilty of acting in "bad faith".

• An intoxicated young man ran a red light, causing a horrific T-bone collision with a retired husband and wife who were making a left turn on a green arrow. The force of the crash totaled both vehicles. The husband sustained significant, life altering injuries, including a fractured hip, femur and clavicle; a crushed scrotum and multiple rib fractures. His wife suffered a fractured ulna and required ongoing treatment for pain in her arm, neck, back and right shoulder. The young man's insurance carrier made no effort to appraise the couple's totaled vehicle or resolve the property damage claim. Ken McKenna represented the couple and negotiated an $800,000 consent judgment from the driver and pursued a bad faith claim against his auto insurer that resulted in a $600,000 settlement.
  
  
• In 2004, Hurricane Frances came ashore with sustained winds near 105 mph, knocking out power to more than 1.1 million homes and businesses. A Volusia County family lost their home of 20 years to the powerful storm when their roof was ruptured, causing severe water and mold damage throughout the home. Their insurer, Citizens Property Insurance corp., refused to declare the property a total loss. However, represented by Tony Sos, a judge-appointed insurance adjuster disagreed with Citizens, declaring the home a total loss and awarding our client their policy limits under coverage A, in addition to loss of contents and use.
  
  
• This DWKM&R client applied for insurance coverage online and was issued a policy that contained $100,000 in combined single limit BI coverage and $30,000 in UM coverage. At the time, he did not execute an uninsured motorist selection/ rejection form. Concerned about the high premium, our client contacted his insurance company to discuss lowering the cost. The only option the company offered was to drop his uninsured motorist coverage. Other potential options were not presented. The company sent our client a form already marked as rejecting his uninsured motorist coverage and told him to sign and backdate it to the original policy date. When our client was involved in a catastrophic accident that has left him a paraplegic, the insurance company initially disclosed policy limits of $100,000 in BI and $30,000 in UM, then reversed its position, stating our client did not have uninsured motorist coverage per the signed selection rejection form. Kenneth McKenna negotiated a $250,000 settlement for his client on the basis that the insurance company failed to meet its burden of proof to establish that our client made a knowing and informed rejection of UM coverage.
  
  
• A Central Florida couple purchased homeowners policy that insured their property against losses caused by windstorms. They paid all of their premiums and otherwise performed all of the terms of the policy. On August 13, 2004, Hurricane Charley crossed Central Florida as a category 3 storm, damaging the couple's roof and pool enclosure. They notified their insurance company about the property damage and submitted a claim for benefits; however the company refused to provide adequate compensation. The couple first attempted to resolve the matter through mediation, but their insurance company only offered $5,000, stating it would not pay any more money than that to resolve the claim. Then the couple retained DWKM&R. Anthony Sos filed suit and ultimately negotiated a settlement of $125,000.
  
  
• DWKM&R represented a badly injured elderly woman whose car insurance company wrongfully denied her coverage to pay for medical expenses and nursing care. Only after the lawsuit was filed and a trial loomed did the insurance company agree to compensate their insured customer for its "bad faith" handling of her claim.
  
  
• DWKM&R handled a complex insurance dispute involving five life insurance companies that engaged in a common practice known as "post claims underwriting." After a claim is presented, the carrier looks for any reason not to pay. When the carriers were forced to take a position, two of them paid benefits in excess of $4 million for the beneficiary.
  
  
• DWKM&R represented a client who required two back surgeries following an car accident. The client's insurance company refused to pay the $25,000 policy limit, violating Florida law requiring insurance companies to act in good faith when making claim decisions. DWKM&R negotiated a settlement of $275,000 for the client, an amount significantly more than the original policy limits.
  
  
• In another case, DWKM&R handled a bad faith claim against an insurance company that resulted in a settlement of more than 100 times the policy coverage amount.
  
  
• DWKM&R represented a man who purchased private health insurance and developed lung cancer 18 months later. The insurer denied coverage claiming the man's original application did not include important information about his health history. DWKM&R negotiated a $150,000 settlement to cover the man's medical bills and other damages.
  
  
• This DWKM&R client had recently relocated from Oregon to the Orlando area when he was involved in a car accident with an uninsured migrant worker. The man's car flipped on impact, resulting in a mild traumatic brain injury. He filed a claim with his Illinois-based national insurance carrier for his $25,000 policy limit, but the carrier refused to pay. Represented by DWKM&R, the man filed an insurance bad faith suit against his carrier. Five years after the accident occurred, the case settled for $300,000, nearly 12 times the original policy limits.
  
  
• A 25-year-old man barely escaped death when a car driver ran a red light. The man suffered catastrophic injury including brain damage, a shattered pelvis and ruptured diaphragm. He also suffered from erectile dysfunction and multiple skin grafts that left him severely scarred and disfigured. This victim quickly settled with the other driver's insurance company for the limits of his policy. However, his own uninsured motorist carrier tried to avoid paying benefits. DWKM&R represented the injured young man in the face of his insurance company's bad faith dealings, which ultimately proved costly. Due to the company's failure to pay the $10,000 policy limit, it was ultimately forced to pay a $1.4 million settlement.