What Is Bad Faith Insurance Claims And What Actions Constitute Insurance Fraud In New York?
Bad faith insurance claims are claims that arise when an insurance company has failed to act within the terms of its contact. Whenever an insurance company fails to honor its contractual obligations with its beneficiaries, then a civil complaint alleging the insurance company of bad faith may be filed. Although most bad faith insurance claims alleges negligence such as implementing insufficiently high coverage limits and policy exclusion, there are many that are based on fraud. Material misrepresentation on the application is one of the most common forms of insurance fraud in New York City. For example, when a broker/agent from a New York City Medicaid reimbursed insurance company intentionally and knowingly misrepresents to a potential beneficiary that he/she is qualified to receive insurance coverage when in fact he/she is not, then, the broker may have conducted insurance fraud. Is it the broker’s fault or the Insurance Company’s? That depends. If the insurance broker was acting wit
