What is insurance litigation?
What is the definition of Litigation?
Litigation involves the process of taking a lawsuit to court, however, not the actual lawsuit. Litigation is what happens after a lawsuit has been filed. The objective of litigation is for both parties that are involved in the lawsuit to reach an agreement on a settlement that serves both of their interests.
People who take out an insurance policy have the understanding that their insurance company will abide by the terms and conditions of the insurance policy, essentially acting in good faith. When a claim is filed, policyholders expect the insurance company will meet their obligations. If the insurance company does not honor the stipulations outlined in the insurance policy, policyholders can take them to court. This is when insurance litigation occurs.
When it reaches the stage of insurance litigation, it is typically because of a misunderstanding with the policy or contract. Insurance contracts and policies tend to be complicated and even confusing, leading to misunderstandings unless you are acquainted with the insurance terminology that is used.
Types of Insurance Litigation
Typically, an insurance company retains legal counsel when they and their insured client are sued for something in the client’s contract. An example of this is if said client causes an auto accident that leaves another person injured or dead. The victim or their loved ones could go to court to seek compensation for their losses. The insurance company that insures the client who caused the accident is typically the entity that pays out the compensation, if awarded. That insurance company has the option of contesting the accusations of liability and any awarded amount.
Insurance defense attorneys are able to defend against all types of insurance-related cases. There are two ways that lawyers can be retained. One way involves insurance firms that require that their clients use specific attorneys who are contracted with their companies. The other instance entails insurance companies permitting clients to seek out their own legal counsel.
What kinds of issues are covered with insurance defense?
Essentially, insurance litigation is based on the mutual understanding that the insurance company owes a certain standard of care to its policyholders. In principle, a competent insurance company should fulfill the following responsibilities:
• Provide benefits where coverage should be given according to the policy that the holder and the company agree to.
• Acknowledge its duty to defend a claim that is given under the terms of the insurance policy.
• Acknowledge its duty of indemnification, to pay a judgment against the policyholder up to the limit of coverage.
In order for the policyholder to qualify for an insurance litigation case, damage must be brought against them by the insurance company. So, for instance, a policy holder may endure a form of damage if the insurance company at the center of litigation fails to offer a reasonable settlement for a valid claim. More damage may emerge if subsequently the policyholder is then subject to judgment in excess of the limits of the policy.
Insurance Litigation Cases
For the most part, state statutes will deal with the responsibility of the insurers when handling claims. Many states come up with their own department for issues related to insurance, which will be responsible when it comes to regulating how insurance companies throughout the state process claims and treat customers accordingly.
Beneficiaries, third-parties and policyholders can file court action to pursue damages when they suspect their insurance company has participated in some type of unfair or unreasonable practice regarding claims and coverage.
Litigation Attorney Does
When you retain the services of an attorney for an insurance litigation case, they assist you with multiple tasks during the entire insurance litigation process:
• Representation in court
• Jury studies
• Identifying a pattern with issues involving your insurance company
• Provide mediation
• File all documentation and paperwork
Get The Help You Need in the Tri-Cities at Aultman Law
At Aultman Law, we are a small law firm feel with big law firm experience! My clients do not wonder if their case is being worked up. As my client, I work up every case as if it will go to trial because an attorney who does not prepare a case for trial is an unprepared attorney. As my client, you are kept informed about the status of your case at every step until the case is successfully resolved because, after all, it’s your case.
At Aultman Law, experience is the difference. Among the advantages you enjoy when you let me represent you are an excellent track record, unparalleled customer service, and transparent fees.