Your insurance company is expected to act in a manner that puts you first. They have an obligation to do so, and you are in a contractual agreement with that company.
Unfortunately, insurance companies often will not put their clients first. They may even break this contractual relationship. This is known as acting in bad faith. Below are a few examples of how this can happen.
Unreasonable denials
It is possible for insurance claims to be denied, but there has to be a valid reason to do so. If the person should be approved for the payout, but the insurance company denies it anyway, that can be an example of operating in bad faith. The company may just be making a decision based on their own bottom line, rather than the agreement with the policyholder.
Unreasonable delays
Additionally, the insurance company is obligated to communicate with you in a reasonable and prudent manner. If there are significant delays for no reason, it may be that the insurance company is hoping you will simply drop the claim. That does not mean you should always get a payout instantly, but when delays extend beyond what would be reasonably expected, it can be a problem.
Underpayment issues
Finally, there are some cases where the insurance company will authorize a payout, but it will clearly be far less than the person deserves based on the evidence that they have provided. The total amount of a payout is a common area of contention, as many policyholders believe they deserve more than the insurance company is willing to authorize.
If you believe your insurance company has been acting in bad faith, you may have legal options, so it is important to know what steps to take.