When you purchase an insurance policy, you are entering into a contract built on trust and mutual obligation. You pay your premiums with the expectation that your insurer will be there when disaster strikes, ready to honor their commitments fairly and promptly. Unfortunately, this trust is often betrayed when insurance companies prioritize profits over policyholder welfare.
Insurance bad faith occurs when an insurer fails to fulfill its legal duty to deal honestly and fairly with its customers, often leaving policyholders in financial distress precisely when they need support most. Understanding your rights under Oregon’s robust bad faith laws is crucial for protecting yourself against these harmful practices and ensuring you receive the coverage you have paid for.
At Kantor & Kantor, we are more than just legal professionals – we are people helping people. We are driven by a passion for justice and a commitment to leveling the playing field between policyholders and insurance giants. When you choose us as your bad-faith attorneys, you choose a team that will fight tooth and nail to protect your rights and secure the compensation you are entitled to.
Contact us at 818-886-2525 for a free consultation to discuss your situation and learn how we can help.
What Is Insurance “Bad Faith?”
Insurance is meant to provide peace of mind and a safety net for individuals in times of need. Insurance companies are legally obligated to act in good faith in the handling of your claim. However, when an insurance company fails to fulfill its obligations in good faith, it can lead to devastating consequences for policyholders. Insurance bad faith is a legal term that refers to the improper conduct of an insurance company toward its policyholders. When an insurance company acts in bad faith, it violates its duty to deal fairly and honestly with its customers, often resulting in significant harm to the policyholder.
Oregon Bad Faith Insurance Law
In Oregon, policyholders are protected under the state’s Unfair Claims Settlement Practices Act, codified in ORS 746.230. Until recently, Oregon was one of only three states that had not recognized “first-party insurance bad faith” claims, despite having the unfair claims practices statute since the late 1960s. However, following the landmark 2023 Oregon Supreme Court decision in Moody v. Oregon Community Credit Union, policyholders can now bring negligence per se claims against their insurers for violations of the statute. Oregon law specifically prohibits insurers from:
- Misrepresenting facts or policy provisions in settling claims
- Failing to acknowledge and act promptly upon communications relating to claims
- Failing to adopt and implement reasonable standards for the prompt investigation of claims
- Refusing to pay claims without conducting a reasonable investigation based on all available information
- Failing to affirm or deny coverage of claims within a reasonable time after completed proof of loss statements have been submitted
- Not attempting, in good faith, to promptly and equitably settle claims in which liability has become reasonably clear
- Compelling claimants to initiate litigation to recover amounts due by offering substantially less than the amounts ultimately recovered in actions brought by such claimants.
Under the Moody decision, Oregon policyholders can now recover emotional distress damages through negligence per se claims when insurers violate ORS 746.230. The Oregon Supreme Court recognized that insurance contracts are made for policyholders’ economic and financial peace of mind, and that emotional distress stemming from unfair denial of benefits merits protection as a matter of public policy.
Bad Faith Tactics Used by Insurance Companies
Insurance companies are profit-driven entities, and, unfortunately, some may resort to bad faith tactics to protect their bottom line at the expense of policyholders. At Kantor & Kantor, we have seen firsthand the tactics insurance companies employ to deny, delay, or underpay valid claims.
1. Delayed, Improper, or Absent Investigation
Insurance companies are obligated to promptly and thoroughly investigate claims made by their policyholders. However, bad faith may arise when an insurer fails to conduct a proper investigation or unreasonably delays the process. This could involve:
- Ignoring crucial evidence related to the claim
- Failing to interview witnesses or obtain necessary documentation
- Disregarding medical reports or expert opinions relevant to the claim
- Dragging out the investigation process without valid reasons.
2. Denial Based on Incomplete or Inaccurate Justification
A hallmark of bad faith is when an insurance company denies a legitimate claim without providing adequate justification or reasoning. Examples of this include:
- Rejecting a claim without providing a clear explanation or citing ambiguous policy language
- Denying benefits based on incorrect interpretations of policy terms
- Using biased or misleading information to support the denial of a claim
- Failing to communicate the specific reasons for denial to the policyholder.
3. Underpayment of Claims
Another tactic used by insurers engaging in bad faith is underpaying valid claims, often to minimize their financial obligations. This may involve:
- Offering a settlement amount far below the actual value of the claim
- Disregarding the full extent of damages suffered by the policyholder
- Employing tactics to undervalue medical treatments, property damage, or other losses
- Delaying payment of the claim in the hope that the policyholder will accept a lower settlement out of desperation.
4. Other Unreasonable Conduct by the Insurer
Beyond outright denial of valid claims, insurers can breach their duty of good faith and fair dealing through various forms of unreasonable conduct, including:
- Intentionally prolonging the claim process without valid reasons, causing undue financial strain on the policyholder
- Providing false information or misleading the policyholder regarding benefits or the claims process
- Attempting to dissuade or obstruct the policyholder from pursuing legal action against the insurer.
Any such behavior that demonstrates a lack of honesty, fairness, or diligence on the insurer’s part may constitute bad faith.
Why Choose Kantor & Kantor?
At Kantor & Kantor, we understand the frustration and challenges that arise when dealing with bad-faith insurers. With a proven track record of success, extensive experience, and a client-centered approach, here is why you should choose us to represent you:
Successful History of Holding Bad Faith Insurers Accountable
Our Portland bad faith insurance lawyers have a long and successful history of holding bad-faith insurers accountable for their actions. We have secured numerous favorable outcomes for our clients, ensuring they receive the compensation they deserve. Our commitment to excellence in legal representation has earned us a reputation as a trusted advocate for policyholders across Portland and beyond.
Extensive Experience Litigating Bad Faith Cases
With extensive experience in litigating bad faith cases, our lawyers possess the knowledge and skills to navigate insurance law’s complexities. We understand the tactics employed by insurance companies to avoid their obligations, and we know how to counter them effectively. Whether through negotiation or litigation, we will tirelessly pursue justice on behalf of our clients.
We Put Our Clients First
At Kantor & Kantor, we prioritize the needs and interests of our clients above all else. We recognize that each case is unique, and we take the time to listen to our client’s concerns and objectives. Our Portland bad faith insurance lawyers work closely with clients to develop personalized legal strategies tailored to their specific circumstances. From the initial consultation to the resolution of the case, we provide compassionate guidance and support every step of the way.
We Advocate for You Aggressively
When you choose Kantor & Kantor, you can trust that we will fight relentlessly on your behalf. We are known for our aggressive advocacy both in and out of the courtroom. In pursuing justice, we leave no stone unturned, vigorously challenging bad faith insurers and holding them accountable for their wrongful actions. Our unwavering commitment to advocacy ensures that our clients receive the strongest possible representation as we work to achieve the best possible outcome for their case.
How We Can Help Your Case
Here is how our experienced team can help you through your legal challenges:
- Thorough Investigation: Our lawyers thoroughly investigate the circumstances surrounding your insurance claim. We gather evidence, review policy documents, and consult with experts to build a strong case on your behalf.
- Strategic Legal Representation: Once we have assessed your case, we develop a strategic legal plan tailored to your specific situation. We leverage our extensive insurance law knowledge and our experience handling bad faith claims to build a strong case on your behalf.
- Effective Negotiation: Insurance companies often use delay tactics and lowball settlement offers to minimize their financial obligations. We are skilled negotiators who will advocate for our client’s rights. We will work to achieve a fair settlement that fully compensates you for your losses.
- Litigation Strategy: If negotiations with the insurance company are unsuccessful, we will take your case to trial. Our trial-tested litigators have the courtroom experience to present a compelling case before a judge and jury. We will aggressively pursue your claim through every stage of the litigation process, fighting for the best possible outcome.
Contact Kantor & Kantor Today
Dealing with insurance bad faith can be exceedingly frustrating and financially devastating, especially when you are already facing the stress of a loss or injury. If you suspect your insurance company is acting in bad faith, whether through unjustified denials or inadequate settlements, you do not have to face this challenge alone. Remember, insurance companies have teams of lawyers working to protect their interests; you deserve equally dedicated advocacy to protect yours.
Do not let insurance companies take advantage of you. Take the first step toward protecting your rights by contacting Kantor & Kantor for a free consultation. Our Portland bad faith insurance attorneys are ready to listen to your concerns, answer your questions, and provide you with the skilled representation you need to pursue justice.
Attorney Glenn R. Kantor
Glenn Kantor is a founding partner of Kantor & Kantor LLP. As a young attorney, Glenn saw the injustice of wrongful insurance denials and created a law firm to represent individuals seeking to obtain their rightful benefits. Glenn is committed to ensure that clients receive the benefits they are entitled to under their insurance policies or group health plans. [Attorney Bio]
