Unreasonable Claim Handling
Challenging improper insurance claim investigation and processing
Call Now: (866) 222-2020Overview
Insurance companies have a duty to conduct thorough, fair, and unbiased investigations of claims. When insurers fail to properly investigate, ignore evidence supporting a claim, or prioritize finding reasons to deny rather than pay, they may be engaging in bad faith and violating California's Fair Claims Settlement Practices Act.
At Keosian Law LLP, our Los Angeles unreasonable handling attorneys understand the standards insurers must meet and can identify when those standards have been violated. We represent policyholders throughout Los Angeles County—from Sherman Oaks and Encino to Glendale, Burbank, and Downtown LA—who have been subjected to improper claim handling by their own insurance companies.
Whether your insurer is using biased adjusters, ignoring evidence that supports your claim, or creating bureaucratic obstacles designed to frustrate you into abandoning your property damage or personal injury claim, our attorneys know how to fight back and hold them accountable.
Examples of Unreasonable Handling
- Failing to investigate claims promptly or thoroughly
- Ignoring evidence that supports coverage
- Using biased or unqualified experts to evaluate claims
- Setting unrealistic or impossible documentation requirements
- Misrepresenting policy terms to the policyholder
- Not communicating claim status within required timeframes
- Applying incorrect policy provisions to deny claims
- Repeatedly reassigning adjusters to restart the process
- Conducting surveillance or investigation designed to harass rather than evaluate
- Making decisions based on claim value rather than claim merit
What Insurers Are Required to Do
California law and the Fair Claims Settlement Practices Regulations impose specific obligations on insurance companies:
- Timely Acknowledgment: Acknowledge receipt of your claim within 15 calendar days.
- Prompt Investigation: Begin investigating immediately and complete within a reasonable time.
- Fair Evaluation: Consider all evidence objectively—not just evidence supporting denial.
- Timely Decision: Accept or deny the claim within 40 days of receiving proof of loss.
- Written Explanation: Provide clear, written reasons for any denial citing specific policy provisions.
- Regular Updates: If more time is needed, provide written status updates every 30 days.
- Qualified Adjusters: Use trained, unbiased professionals to evaluate claims.
Violations of these obligations create grounds for a bad faith lawsuit. Our attorneys document every deviation from these standards and use them to build compelling cases in Los Angeles Superior Court.
Damages for Unreasonable Handling
When an insurer unreasonably handles your claim, you may be entitled to recover:
- Full Policy Benefits: The complete amount owed under your policy.
- Consequential Damages: Additional costs caused by the unreasonable handling—such as worsened damage from delays, emergency expenses, or lost business income.
- Emotional Distress: Compensation for the anxiety, frustration, and stress caused by fighting your own insurance company.
- Attorney Fees: In certain cases, the insurer may be ordered to pay your legal fees.
- Punitive Damages: When the handling is particularly egregious, punitive damages may be available to punish the insurer.
How We Challenge Unreasonable Handling
- Free Case Review: We analyze your claim file, correspondence, and the insurer's conduct to identify specific violations.
- Claim File Demand: Under California law, we obtain the insurer's complete claim file, including internal notes, adjuster reports, and communications.
- Expert Analysis: We engage independent insurance industry experts to evaluate whether the insurer's handling met accepted standards.
- Bad Faith Demand Letter: A detailed demand outlining every violation, supported by evidence and California legal authority.
- Litigation: If the insurer doesn't respond appropriately, we file suit and aggressively pursue all available damages through the Los Angeles court system.
Why Choose Keosian Law
- Insurance Industry Knowledge: We understand the internal practices, software, and tactics insurers use because we've been fighting them for years.
- Trial-Tested: We have tried bad faith cases before juries and won. Insurers know we are not bluffing.
- Contingency Fees:No attorney fees or costs unless we recover for you.
- Local Presence: Our Sherman Oaks office serves all of Los Angeles County, and we appear regularly before judges in the Van Nuys and Downtown LA courthouses.
Your insurance company has teams of adjusters and lawyers protecting their interests. You deserve an experienced attorney protecting yours. Contact us today.
Frequently Asked Questions
Find answers to common questions about our legal services and processes.
Unreasonable claim handling includes failing to investigate claims promptly, ignoring evidence that supports coverage, using biased experts, setting unrealistic documentation requirements, misrepresenting policy terms, and not communicating claim status to policyholders. California's Fair Claims Settlement Practices Regulations set specific standards insurers must follow. Insurers must conduct thorough, objective investigations. They must consider all evidence fairly, not just evidence supporting denial. They should not set up unreasonable barriers to claims, must meet regulatory timelines, and should use qualified, unbiased experts. The California Department of Insurance actively enforces these standards. Yes, you can file complaints with the California Department of Insurance, which investigates insurer misconduct. While this may prompt action, it doesn't recover damages for you. An attorney can pursue legal remedies for bad faith handling in Los Angeles Superior Court, potentially recovering far more than regulatory action alone. Evidence includes the insurer's claim file, internal communications, adjuster notes, timelines showing delays, evidence they ignored, biased expert reports, deviation from their own procedures, and testimony about industry standards they violated. Our attorneys use California's discovery laws to obtain this critical evidence. Yes, insurers must provide written explanations for claim decisions. They must cite specific policy provisions and factual bases for denials. Vague or changing explanations may indicate bad faith handling and strengthen your case for additional damages. Document every attempt to contact your insurer with dates, times, and methods. Poor communication may support a bad faith claim. Send written communications creating a paper trail. If the lack of response continues, consult an attorney from our Sherman Oaks office—we often see immediate insurer response once legal representation is involved.Request a Free Consultation
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"After our basement flooded, our insurance company offered only a fraction of what was needed. Keosian Law stepped in and negotiated a settlement that covered everything."
Michael J.
Sherman Oaks, CA
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