Insurance Company Acting in Bad Faith?
We have an intimate knowledge of Colorado insurance bad faith laws gained through decades of experience representing people in bad faith law suits against insurance companies who refuse to play by the rules. In fact, some of our biggest results involve insurance bad faith. In you think your insurer is acting in bad faith, we encourage you to browse the information below, or contact us now for a free case review.
Read common examples of how insurance companies act in bad faith so that you can identify the signs. See examples of bad faith
Answers to the 12 most common questions we get regarding insurance bad faith cases. Get your questions answered
These five (5) case studies highlight the important precedents for Colorado bad faith cases. View Case Studies
At McCormick & Murphy, we are committed to helping the people of Colorado understand their rights in situations where insurance companies fail to act in accordance with the law. Every year, Coloradans are unjustly denied compensation from their insurance companies, like Allstate, Farmers, USAA, and State Farm, to cover losses that result from auto accidents, natural disasters, or any other type of damage-causing incident.
Whether you need help understanding the specifics of the laws governing insurance bad faith in Colorado, or have a specific denial that you would like to discuss, we are here to help. To speak with an attorney from our offices, please call 888-668-1182, or contact us online now. We are ready and waiting to help.
Examples of Our Expertise in Insurance Bad Faith Cases
Sally C.’s Insurance Bad Faith Case
Sally was injured in a serious automobile accident that totaled her car. At the time of the accident she had medical coverage of $100,000 through an insurance policy covering her automobile. Her car was totaled and she was transported to the hospital in an ambulance. She received additional care form doctors who had been approved by her insurance company. Sally filled out the appropriate forms to make her claim for the medical bills that were being incurred and sent the forms to her insurance company several times.
Sally’s insurance company failed to pay for the medical bills and as a result her bills went unpaid. Sally consulted with McCormick & Murphy who filed a lawsuit and alleged that: (1) her insurance company made no notes or any other documentation regarding the adjustment of her claim for 8 months following the accident; (2) her insurance company knowingly sent the application for the claim to the wrong address; (3) After discovering that it had sent the claim application to the wrong address, the insurance company delayed in paying her medical bills for over a year, which resulted in Sally, who was a single mother, being sent to collections and having her wages garnished; (4) her insurance never sent claim applications for her children, even though it recorded in its records shortly after the accident that they were injured in the accident; (5) When Sally attempted to continue her medical treatment the insurance company wrongfully denied further care, resulting in permanent physical injuries to her.
After a week-long trial the jury awarded over $900,000 to Sally, including over $400,000.00 in punitive damages. When interest was added by the Judge a judgment was entered against her insurance company for over 1.3 million dollars.
Tammy C.’s Insurance Bad Faith Case
In this case McCormick & Murphy filed a suit on behalf of Tammy alleging that she was severely injured when she was struck head on by a drunk driver. At the time of the collision Tammy had $100,000 in medical coverage. Her insurance company had contracted with a third party administrator to assist with the handling of medical claims. Her insurance company initially referred Tammy to three different PPO providers in its Network, but none of them could see her for 3-6 weeks. After repeated calls by Tammy’s attorney, her insurance company eventually referred her to a medical clinic for the injuries she sustained in the auto accident.
The medical clinic that Tammy eventually went to was an approved provider in the PPO Network that Tammy was subject to through her auto insurance policy. The medical clinic treated her for her injured her neck and right shoulder.
Tammy had no post high school degrees, and at the time of the auto accident was working as a cleaning woman. She was the single mother of two minor children for which she was solely responsible. Her insurance company, through its third party administrator assisting with her medical claim, had entered into a contract with Tammy’s medical clinic that prohibited it from billing its insured’s for treatment that was reasonable, necessary and related to auto accidents. During the course of her treatment at her medical clinic, the insurance company questioned various billings that it received from the medical clinic. Initially, the insurance company told the medical clinic that they could not hold Tammy responsible for bills they were questioning. The insurance company then arranged for Tammy to attend an independent medical examination with a neurologist, who issued a formal report. The neurologist stated in her report that all of the care that Tammy had received up to the point of her exam was reasonable, necessary and accident related. She also stated that she did not think Tammy needed any more physical therapy or chiropractic care, but that she should have an MRI performed and she should see an orthopedic surgeon. She stated no opinion about whether Tammy should return to her primary physician at the medical clinic.
Even though the neurologist recommended continuing treatment for Tammy, her insurance company stopped paying for any care after receiving the neurologists report. Her insurance company also began sending letters to her medical clinic and other health care providers telling them that they should look directly to Tammy for payment of any care she received after the date the neurologists report was issued.
After the neurologists report, while shopping for an exercise machine that was prescribed by her medical clinic, Tammy suffered a mild aggravation of her auto related injuries when the exercise machine fell off of a shelf and struck her. Her insurance company refused to pay for a number of bills after that date on the basis that the treatment was related to the incident with the exercise bike, and not the auto accident. Even though the medical clinic doctors stated in her medical records that Tammy had suffered only a temporary aggravation of her auto accident injuries, her insurance company never made any attempt to determine what amount of the treatment was auto related and what portion was related to the exercise bike incident.
As a result of her insurance company’s refusal to pay for any bills after the neurologists report the medical clinic sued Tammy and proceeded to garnish her wages, just two days before Christmas.
Pursuant to the neurologists recommendations, which the insurance company had requested and paid for, Tammy returned to her primary care physician at the medical clinic, where she received referral for an MRI and to see an orthopedic surgeon. Her insurance company received the bill for the MRI shortly thereafter, but did not pay the MRI bill until months later.
Tammy also saw an orthopedic surgeon, but her insurance company did not pay his bill until seven months after it was received, and 3 months after Tammy had been sued by her medical clinic.
Tammy first learned of the suit against her after a default judgment had already been entered. At that time her attorney spoke with her insurance company’s claims adjuster concerning the suit, and she agreed to pay all Tammy’s bills with the medical clinic, amounting to around $1,800.00.
A few months later, her insurance company also told the medical clinics collection agency that they would settle the suit for a payment of $1,200.00. Her insurance company did not pay all of the outstanding bills as it had promised, nor did it pay the $1,200.00 it agreed to pay the collection agency. Instead, it paid only $675.00 towards the bills.
As a result of the failure of her insurance companies failure to pay for bills related to the accident that it promised to pay, Tammy’s paycheck was garnished Two days before Christmas. As a result of the garnishment, Ms. Carpenter was not able to purchase Christmas presents for her children or buy groceries for Christmas dinner.
The case against her insurance company went to trial before a jury, and after over a week in trial the jury returned a verdict in Tammy’s favor for over $400,000. After the Judge added interest, a judgment was entered against her insurance company for over $580,000. The insurance company appealed and McCormick & Murphy was successful in upholding the verdict on appeal. The insurance company eventually paid over $600,000.
Disclaimer: Information provided on this site is NOT formal legal advice. It is generic legal information. Under no circumstances should the information on this site be relied upon when deciding the proper course of a legal action. Always get a formal case evaluation from a licensed attorney if you think you might have a personal injury lawsuit.