Insurance companies in Florida and throughout the country are required to act in good faith in investigating and paying out policy claims. However, bad faith is defined differently depending on where the claim is made. In some cases, a bad faith action by an insurance company is a tort whereas it could be considered a breach of contract in other instances. In a tort case, a policyholder must show that benefits were withheld and that doing so was unreasonable.
When a family in Florida loses a loved one, the pain and grief can be immense. Unfortunately, the practical costs can also be significant. This includes dealing with final expenses, hospital bills and funeral costs. When a life insurance policy refuses to pay out, surviving family members may face serious financial consequences. One veteran is fighting USAA, a major insurer for American military forces, in court after the company refused to pay out $1 million in life insurance benefits following the death of her husband.
Life insurance is a common way for Florida residents to assure the continued security of family members in the event of one's death. A woman in Perryville has filed a lawsuit against Life Insurance Co. of North America, alleging breach of contract and claiming she is entitled to more benefits than were paid to her after the death of her husband.
Collecting on a life insurance policy can sometimes lead to unexpected problems for bereaved Florida families. One case on the other side of the country illustrates the kind of difficulties that people can face. In Utah, a man was shot and killed by a police officer. While the police allege that the man had raised a handgun and pointed it at the officer, his family and others say that the man put down the gun and ran through a gate into his own yard.