217-854-2602
In Illinois, Section 155 of the Illinois Insurance Code addresses insurance bad faith. This law allows policyholders to sue their insurance companies for bad faith if the insurer unreasonably refuses to pay a claim or fails to defend a claim covered by the policy.
Key points include:
- Definition of Bad Faith: An insurer acts in bad faith if it does not have a reasonable basis for denying a claim or fails to investigate the claim adequately.
- Consequences: If the court finds that the insurer acted in bad faith, the insurer may be liable for the amount of the claim plus additional damages, including attorney's fees and possibly punitive damages.
- Burden of Proof: The burden is typically on the policyholder to demonstrate that the insurer's denial of the claim was unreasonable.
- Burden of Proof: The burden is typically on the policyholder to demonstrate that the insurer's denial of the claim was unreasonable.
If you’re considering a claim under Section 155, it may be beneficial to consult with a lawyer who specializes in insurance law to assess your situation and provide guidance on the best course of action.
The materials provided on this website are for informational purposes only. These materials do not, and are not intended to, constitute legal advice.
