An insurance policy is a contract between the insurance carrier who issues the policy and the insured who buys the policy. Most individuals or business pay for the policies year after year and assume that when there is a need to file a claim – the insurance carrier will pay as promised.

Sadly, this doesn’t always happen, and claims are denied for a variety of reasons including lack of coverage, an error on an application, lack of timely reporting of a claim, or insurance fraud – typical valid reasons for claims denial.

You do have recourse against the Insurance Carrier if your claim has been denied.

With the exception of actual insurance fraud, it’s always wise to talk to an attorney if you feel your claim is being unjustly denied.  But one part of the Illinois Insurance Code that many individuals don’t know about is what’s called “Bad Faith Denial”.

A Bad Faith Denial on the part of an insurance carrier is when the carrier’s delay or failure to pay a claim to an insured has been “vexatious and unreasonable”. In layman’s terms, that means the carrier caused or is tending to cause annoyance, frustration or worry due to the denial of the claim or late payment of claim monies due an insured.

In the State of Illinois, the law states an insured, if subject to a bad faith denial, has a right to RECOVER reasonable Attorney fees & other costs in an amount not to exceed

• 60% of actual damages;
• $60,000; or
• The excess of the amount which the court or jury finds the insured is entitled to recover over the amount which the company offered to pay

Don’t wait and anguish.

If you feel your insurance claim has been denied unjustly, it’s time to call an Illinois Insurance Contract Lawyer to help you navigate the complex waters with the insurance carrier.  At Mag Mile Law our Insurance Litigation team works on a contingency basis – you don’t pay until we win your case.  To schedule an appointment with Attorney Steven Mikuzis or Attorney Mario Iveljic, call 708-576-1624 today for a free consultation.