EtcINSURED COMPANY'S DISHONEST PERFORMANCE

Q.

Last year, I was in a car accident due to my fault and the other driver was injured. The problem is that my insurance company refused to settle with the other driver because they thought his injuries were minor. After that, the other driver sued me personally and I was awarded a compensation amount that was far more than my car insurance coverage. This is really unfair because if my insurance company had settled the case before the lawsuit, I would not have received this judgment.

A.

An insurance policy is a contract between an insurance company and the person who purchases the insurance. Both parties must follow the terms of the contract and perform them in good faith. For example, you cause a third party to have an accident, such as a car accident or a slip and fall on your property. The injured party seeks a settlement for the amount of the policy limit (for example, $15,000). However, your insurance company refuses to settle, and the other party sues you. And you are awarded an amount that exceeds the $15,000 that you are personally liable to pay. In such cases, your insurance company should not allow you to receive an award that exceeds the policy limit when settling the accident within the policy limit. Your insurance company has a duty to treat you fairly and protect you from third-party claims. If the insurance company acts unreasonably, such as delaying payment or paying less than it should have, it is a breach of duty and you can sue the insurance company for it. You can also sue the insurance company for not treating you fairly, not only for the amount you personally owe to the third party, but also for your emotional distress and punitive damages. If you have suffered any damages due to the insurance company not fulfilling its obligations as an insurance company or due to the insurance company's unreasonable actions, you should definitely consult with an accident attorney to resolve the problem.