How do I handle a bad faith claim against an insurer in an Underinsured/Uninsured Motorist case?

How do I handle a bad faith claim against an insurer in an Underinsured/Uninsured Motorist case?

Whereas, a mandatory arbitration clause for PIP benefits is deemed unconstitutional for a lack of due process with respect to a health care provider, policies that provide for arbitration of UM claims are binding and enforceable. Hilton v. Citizen Insurance Co. of New Jersey, 201 So.2d 904 (Fla. 1st DCA 1967). Therefore, when the policy contains this type of language, there is a strong incentive for the carrier to refuse to settle for anything that exceeds the policy limits because they are aware that the insured is forced into arbitration where the recovery will likely be lower. However, all this can get turned upside down because Florida Statue has been amended to include a provision that allows the insured to collect full tort damages against the insurer exceeding the policy limits when the insurer has committed a violation by failing to settle a UM claim. Apparently, this puts the insurer in an uncomfortable position because they can’t rely on a favorable arbitration hearing, more inclined to side with them with a lower settlement figure than deserved, to ignore a meritorious claim deserving of a more suitable settlement amount. You may think the only way to prove that the settlement offer from the insurance company was in bad faith is to recover damages in excess of the initial settlement offer. Though it certainly presents strong evidence for a claim of bad faith after recovering damages in excess of the offer, Florida Supreme Court has decided that this isn’t necessary. Only in a third part context must you obtain an excess verdict against the insurer to pursue a statutory bad-faith claim. State Farm Fire & Casualty Co v. Zebrowski, 706 So.2d 275 (Fla. 1998). Sometimes the insurance carrier will try and use a delay tactic to try and compromise an insured’s position. If they surpass the 60 day claim period under the statute and then offer the UM limits which the insured accepts, this may be sufficient to determine the insured’s damages, and allow for a bad faith claim to proceed. Insurance carriers fear bad faith claims tremendously because the damages that are recoverable are not limited. Therefore, hiring a knowledgeable Palm Beach County accident attorney to represent you against these massive insurance carriers is critical to preserving your claims after you have been injured in a car accident.