Best Bad Faith Insurance Lawyers in Maryland

About Bad Faith Insurance Law in Maryland, United States

Bad faith insurance refers to an insurer’s unfair or dishonest attempts to avoid its obligations to policyholders. In Maryland, insurance companies are required to handle claims honestly, fairly, and in good faith. If an insurer unreasonably refuses to pay a valid claim, delays payments, or fails to investigate properly, they may be acting in bad faith. Maryland has enacted specific laws allowing policyholders to seek remedies when insurance companies do not uphold their legal duties.

Why You May Need a Lawyer

People often seek legal help with bad faith insurance matters for several reasons. If your insurance company has denied, delayed, or underpaid your legitimate claim without a reasonable explanation, you may need professional assistance. Common scenarios include unreasonable claim denials, failure to investigate a claim, offering inadequate settlement amounts, or retaliation after filing a claim. A lawyer experienced in Maryland bad faith insurance matters can help you understand your rights, gather necessary evidence, negotiate with insurers, and represent you in court if needed.

Local Laws Overview

Maryland law provides important protections for policyholders facing bad faith actions by insurers. The Maryland Insurance Article Section 27-1001 outlines the procedures and requirements for bad faith claims against insurers for first-party claims (claims by the insured against their own policy). Before taking legal action, claimants typically must file a written complaint with the Maryland Insurance Administration (MIA), which will review the complaint and may issue findings. Under certain circumstances, after this administrative review process, a policyholder may sue the insurer for damages including actual losses, attorney fees, interests, and potentially punitive damages in cases of egregious conduct. Deadlines, known as statutes of limitations, are key in these cases, so timely action is essential.

Frequently Asked Questions

What does bad faith insurance mean in Maryland?

Bad faith insurance in Maryland refers to an insurer’s unreasonable refusal to pay or investigate a legitimate claim under an insurance policy, or otherwise failing to act honestly and fairly towards their policyholder.

What are examples of bad faith by insurance companies?

Examples include denying claims without a valid reason, delaying payment, failing to investigate properly, misrepresenting policy provisions, or offering settlements far below what is owed.

Do I have to file a complaint with the Maryland Insurance Administration first?

In most first-party bad faith cases, you must first file a written complaint with the Maryland Insurance Administration and complete their review process before pursuing a lawsuit against the insurer.

What damages can I recover in a Maryland bad faith insurance case?

If successful, you may be eligible to recover the amount owed under the policy, attorney fees, interest, and, in cases of especially wrongful conduct, sometimes additional damages.

How long do I have to file a bad faith claim in Maryland?

The statute of limitations varies depending on the type of insurance policy and circumstances, but generally, prompt action is required. It is best to consult an attorney to ensure you meet all deadlines.

Does bad faith law apply to all types of insurance in Maryland?

Most commonly, bad faith claims in Maryland apply to first-party claims involving property, casualty, and auto insurance. The laws for third-party claims or health insurance may differ.

What should I do if my insurance company denies my claim?

Document all communications, review your policy, and consider contacting the Maryland Insurance Administration or a lawyer for guidance before taking further action.

Can I recover attorney fees if I win a bad faith claim?

Yes, Maryland law allows for the recovery of reasonable attorney fees in successful bad faith insurance claims.

What proof do I need for a bad faith insurance claim?

You need evidence that the insurer’s denial or delay was unreasonable. This can include written communications, claim denials, policy documents, and records of your losses or damages.

Will the insurance company retaliate if I file a complaint?

Insurance companies are prohibited from retaliating against policyholders for asserting their rights. If you face any adverse actions after filing a complaint, inform your lawyer or the Maryland Insurance Administration immediately.

Additional Resources

Here are helpful resources and organizations in Maryland for those dealing with bad faith insurance matters:

- Maryland Insurance Administration (MIA): The state agency responsible for regulating insurers and handling complaints. - Maryland State Bar Association: Offers a lawyer referral service and consumer legal resources. - National Association of Insurance Commissioners (NAIC): Provides consumer information and state regulatory contacts. - Local legal aid organizations: Sometimes offer free or reduced fee legal services for eligible individuals.

Next Steps

If you believe your insurer has acted in bad faith, begin by gathering all relevant documents, such as your insurance policy, correspondence, claim forms, and denial letters. Promptly file a complaint with the Maryland Insurance Administration if you have a first-party claim. Consult with an experienced bad faith insurance attorney to review your options, preserve your rights, and maximize your chances of a successful outcome. Take action quickly to avoid missing important legal deadlines.