In Nevada, insurance and legal advice often go hand in hand. If a person needs to file a claim following some form of loss, they need to protect themselves by having professional legal guidance, particularly if it is a complex claim. Despite that, some insurance providers might try to convince the policyholder not to secure legal counsel.
This is a red flag that people might fall for thinking that since their insurance company is supposed to be representing them, the company has their best interests in mind. That is not always the case, and the company could be guilty of bad faith. Understanding what constitutes bad faith insurance is key when filing a claim and having issues with the insurer.
Why would an insurer not want the policyholder to get legal help?
Insurance companies put out the impression that they are there to help people. But often, they are primarily interested in profit. Part of that is controlling costs. If they can keep the amount necessary to cover for the loss under control, it benefits the company. It could also keep the policyholder largely unaware of their options with the case. In some instances, it is necessary to have legal assistance to make sure the maximum payout is received.
The insurance company advising a person not to seek legal counsel would constitute bad faith. The law prohibits this. If it happens, the person can file a complaint. A lawyer representing the policyholder has no connection to the insurance company and would therefore give an independent analysis of the case.
For example, if the company said the payout should be a certain amount and the attorney says it should be more, the person would be wise to listen to the attorney. The insurer could twist the case to their advantage and people who are unaware of their rights could never know they were not paid what they should have been to cover the claim.
Insurance company bad faith should not be tolerated
Whether the insurance company is trying to convince a policyholder not to seek legal advice or committing another act that would be bad faith and compromises the person’s rights, it is imperative to have help. Consulting with a legal professional who understands insurance law and has the person’s interests in mind can protect and help them, holding the insurance company accountable for their wrongdoing.
