Evidence That May Support an Insurance Bad Faith Claim in South Carolina
An insurance bad-faith claim generally arises when an insurer unreasonably refuses to pay benefits owed under a valid policy, thereby harming the insured. A denied or disputed claim doesn’t automatically mean an insurer acted in bad faith. The circumstances surrounding the denial, investigation, delay, or settlement offer matter.
If your insurer denied, delayed, or undervalued a valid claim, our Columbia bad faith insurance lawyers can review the claim history and determine whether the insurer’s conduct may warrant further action
What Must You Prove in a South Carolina Bad Faith Claim?
A bad faith claim generally requires more than showing that your insurer failed to pay. South Carolina courts recognize a claim when an insured has a valid policy, the insurer refuses to pay benefits it’s obligated to pay under the policy, the refusal was unreasonable or in bad faith, and the insurer’s conduct caused damage. The key issue is whether your insurer had a reasonable basis for its decision and handled your claim fairly based on the information it had.
What Insurance Conduct Can Raise Bad Faith Concerns?
South Carolina law identifies several insurance practices that can raise concerns about how a claim was handled. Under S.C. Code § 38-59-20, these include:
- Failing to investigate claims using reasonable standards
- Unreasonably delaying payment
- Misrepresenting relevant policy provisions
- Failing to acknowledge communications promptly
- Failing to make a good-faith effort to settle when liability is reasonably clear
For instance, an insurer that repeatedly ignores relevant medical records or delays a decision without a reasonable explanation may raise questions about whether it handled your claim properly. But improper claims practices don’t automatically create a private bad faith claim. The statutory provisions and the common-law bad-faith claim are related but distinct.
Is an Insurance Denial Automatically Bad Faith?
No. An insurer can have a legitimate reason to deny or dispute your claim. The key question is whether it had a reasonable basis for its decision and whether it handled your claim unreasonably or in bad faith. For example, your insurer may dispute whether your policy covers a particular loss. That disagreement alone doesn’t establish bad faith.
Can a Low Insurance Settlement Offer Be Bad Faith?
A low offer doesn’t automatically prove bad faith. The circumstances behind the offer matter. In such cases, our bad faith insurance lawyers in South Carolina may review your policy, the evidence supporting your claim, the insurer’s investigation, its explanation for the offer, and whether the amount offered was substantially below what the evidence supported. Evidence could include medical records, lost income documentation, photographs, accident evidence, and other information the insurer considered or failed to consider.
What Should You Do If You Suspect Insurance Bad Faith in South Carolina?
Start by keeping everything related to your claim. Save your insurance policy, denial letters, settlement offers, emails, text messages, claim forms, medical records, photographs, and other supporting documents. Next, contact our South Carolina bad faith insurance attorneys. They can review your policy and claim file, examine your insurer’s communications and investigation, and determine whether the evidence supports challenging the denial or pursuing a bad faith claim.
When an Insurance Dispute Becomes Something More, Our South Carolina Bad Faith Insurance Lawyers Can Help
A frustrating denial isn’t necessarily bad faith. But if your insurer’s decision seems unreasonable, contact Whetstone Perkins & Fulda to have your claim evaluated. Call 803-799-9400 or email us for your free case review.
