The 4th Circuit Court of West Virginia will allow a widow’s lawsuit for “unfair settlement practices” to go forward against an insurance company that allegedly did not pay the full amount of her husband’s life insurance policy until days before a hearing in front of the state Office of the Insurance Commissioner, reports Virginia Lawyers Weekly.
Such a “bad faith” practice by the insurance company violates the West Virginia Unfair Trade Practices Act, and a lawsuit brought forward by the widow is sound in tort and not in contract.
The widow’s claim does not involve the policy terms or benefits, as she admits in her complaint that she has received the full coverage payment to which she was legally entitled. Instead, her lawsuit is based on the insurance company’s seemingly unlawful conduct in regards to their handling of her claim.
In line with this, the plaintiff is not looking for damages related to the terms of the policy itself, but for punitive damages and attorneys fees and costs associated with the defendant’s improper refusal to honor her claim.
We will keep you updated as this story unfolds.
The Parrish Law Firm life insurance policy claim attorney works with northern Virginia residents who have been wrongly denied life insurance benefits from an insurance provider, and are looking for fair financial restitution. Contact us today for a free case consultation, or call us at 703-906-4229.
A representative of the Parrish Law Firm, PLLC researched and wrote this article with Mr. Parrish’s consent. If you have any questions regarding the legal implications of what you have just read, please send us your question by clicking here so we can have our attorney review it.