Meet Emily Davis, a 28-year-old freelance writer from Orlando, FL. Recently, Emily found herself in a frustrating predicament after being involved in a minor fender bender. To her surprise, her insurance claim was denied, and her policy was rescinded. The reason? A supposed misrepresentation in her application regarding her father living with them. This turn of events has left Emily confused and seeking answers.
Background: Emily’s Insurance Claim Denial and Rescission
Emily’s troubles started with a seemingly minor incident—a fender bender. Living in a no-fault state meant she wasn’t liable for the other vehicle’s damage. She promptly filed a claim with her insurance company, one of the big five, and followed their recommendation for a repair shop. The repair bill came to a hefty $5565 to replace her front bumper, a cost she was relieved to have covered by her insurance.
Emily expected her car to be repaired in three days, but a week passed without approval from her insurance company. Despite leaving numerous messages, she didn’t hear back until the third week. Meanwhile, she had to pay out of pocket for transportation. When she finally spoke with her claim’s agent, he asked odd questions about her father, Jack Davis, who is blind in one eye and unable to drive. He questioned if Jack drove her car or if he had always lived with her since she opened the policy. Emily’s answers were no and yes, respectively. A week later, her claim was denied, and the following week, her insurance was canceled and backdated by three months. To add to her woes, the other driver was now claiming injuries and seeking payment from Emily’s now-defunct insurance.
When Emily discovered her insurance policy had been canceled, she immediately contacted her insurance company. Recalling her conversation with the sales agent when she purchased the policy less than a year ago, she remembered disclosing information about her father, including his partial blindness. Back then, the sales agent had reassured her that because her father didn’t drive, he didn’t need to be listed on the policy. Emily realized that the agent, eager to close the sale, had omitted listing her father as a non-driver, a requirement she wasn’t aware of. Her insurance company stated that the call did not record, and that they could not accept her word for it. She would need to accept the rescission, which is what it’s called when insurance is canceled and backdated. Feeling lost, Emily turned to Google to find out what steps she could take when insurance is canceled after a claim.
Emily’s Redemption: Legal Options when Insurance Canceled After Claim
Emily was deeply troubled and confused by the sudden denial and rescission of her insurance policy. She was forced to pay out of pocket to repair her vehicle, but there was no way she could afford to pay for the victim’s neck and back injuries. She became depressed. She couldn’t understand why her claim was denied and her policy canceled, especially since she had disclosed all relevant information to her sales agent. The insurance company stopped taking her calls. In their minds, the matter was closed. Feeling helpless, she decided to seek legal advice and contacted an attorney.
Legal Options in Insurance Rescission Cases
Emily’s attorneys assured her they could litigate her case and negotiate with the insurance company on her behalf. They explained that their firm operates on a contingency basis, meaning they wouldn’t charge her for their services unless they were successful in resolving the matter in her favor, in which case the court would force the insurance company to pay her legal fees. Confident she wouldn’t be burdened by additional costs, Emily signed up for representation.
Her attorneys immediately began advocating on her behalf. It became evident that the insurance company had engaged in several acts of bad faith. These practices included delaying claims, withholding payment, failing to negotiate, neglecting to communicate with the claimant, and exhibiting unreasonable delays. The insurance company also failed to defend against the claim. Despite Emily’s numerous attempts to contact her claim’s agent for updates and investigations into the sales agent, her calls and messages were consistently ignored. Even after her claim was denied and her policy rescinded, her requests to discuss the sales process were denied.
Emily’s Legal Victory: A Case Study
Emily’s attorneys successfully litigated her case, proving the insurance company had acted in bad faith. As a result, the court ordered the insurance company to reinstate her policy from her renewal date to her next renewal date. They were also mandated to cover the injuries sustained by the other party and reimburse Emily for the repair costs of her vehicle. Additionally, they were required to pay her attorney and legal fees. Furthermore, the insurance company had to compensate Emily for her out of pocket travel expenses and her pain and suffering due to the depression she experienced during the ordeal. This included covering the costs of her treatment and lost wages because of missing work. The court held the insurance company accountable for the mental health struggles they had caused her.
When insurance companies act in bad faith, it’s a serious violation of trust and fairness. At Anthony-Smith Law, we’re committed to holding them accountable for their actions. If you’ve been wronged by an insurance company, we’re here to help. Contact us at 321-900-HELP (321-900-4357) to discuss your case.
