When South Carolinians purchase an insurance contract, they expect their insurance carrier to act in good faith and honor valid insurance claims. Sadly, many policyholders encounter bad faith insurance tactics that delay, underpay, or outright deny benefits. These bad faith actions not only cause financial hardship but also violate South Carolina law, which recognizes the implied covenant of good faith and fair dealing between insurer and insured.
What Is Insurance Bad Faith?
At its core, Insurance Bad Faith happens when an insurance carrier fails to uphold obligations under an insurance contract. Instead of investigating fairly and paying legitimate claims, the insurer uses bad-faith tactics to protect profits.
Examples include:
- Claim denial without valid reasoning.
- Offering settlement below policy limits despite clear evidence of property damage or medical bills.
- Misrepresentation of insurance coverage.
- Ignoring claim submission or stalling the claims process.
Under South Carolina insurance law, these tactics can result in an actionable bad faith insurance lawsuit or bad faith lawsuit, with potential recovery of punitive damages, attorney’s fees, and compensation beyond the original insurance claim.
Common Bad Faith Tactics in South Carolina
Recognizing bad faith tactics is essential for protecting your rights. Here are frequent methods used by the insurance industry:
- Unreasonable Delays – The claims adjuster or insurance adjusters take months without proper investigation of claims.
- Lowball Offers – Trying to settle a car accident or auto accident case for less than policy limits.
- Unjustified Claim Denial – Rejecting personal injury claims, workers’ compensation claims, or life insurance benefits without justification.
- Misrepresenting Policy Terms – Twisting wording in an auto insurance policy, homeowners insurance policy, or property and casualty insurance to deny payment.
- Improper Cancellation – Terminating insurance coverage after a claim submission.
These bad faith actions can devastate policyholders, especially those facing medical care, medical records, medical procedure expenses, or costs related to a totaled vehicle after a motor vehicle accident.
The Role of South Carolina Law
South Carolina law enforces accountability by requiring good faith and fair dealing in all insurance contracts. If breached, courts allow victims to pursue bad faith remedies through a bad faith insurance lawsuit.
Policyholders may seek:
- Compensation for unpaid insurance claims.
- Recovery of attorney fees or attorney’s fees.
- Punitive damages if misconduct was intentional.
- Damages for breach of contract and emotional distress.
The statute of limitations (or statutes of limitations) controls how long victims have to file a bad-faith demand letter or initiate litigation. Missing a claim filing deadline can jeopardize recovery.
Types of Cases Involving Insurance Bad Faith
Auto and Car Insurance
After a car accident or motor vehicle accident, insurers may dispute liability laws, liability insurance carrier obligations, or policy limits. Denial of uninsured motorist coverage and unfair auto insurance policy settlements are frequent.
Homeowners Insurance
Following disasters like fire, theft, or a flood in Columbia, policyholders may face claim denial under Homeowners Insurance or homeowners insurance policy coverage.
Life Insurance and Disability
Life insurance and long term disability benefits claims often face delay or wrongful denial, leaving families without financial security.
Workers’ Compensation
Employers’ Workers’ Compensation and workers’ compensation claims can involve bad faith insurance claims, particularly when insurers fail to authorize medical care or pay wage replacement.
Business Coverage
Disputes with property and casualty insurance or automobile insurance policies may involve bad-faith tactics that impact small businesses.
Warning Signs of Bad Faith
You may be experiencing bad faith insurance if:
- The claims adjuster refuses to provide explanations.
- Settlement offers ignore your medical bills or property damage.
- Your insurance premiums suddenly rise after filing a claim.
- You receive no response to a bad-faith demand letter.
- The insurance department receives multiple complaints about your insurer.
If this sounds familiar, you may need to consider your legal options, including contacting trial lawyers or a Qualified Attorney to evaluate your case.
The Litigation Process in South Carolina
Filing a bad faith insurance claim may involve:
- Claim Submission and review of the insurance contract.
- Collecting medical records, police reports, and investigation of claims.
- Sending a bad-faith demand letter to the insurance carrier.
- If unresolved, pursuing a bad faith insurance lawsuit in court.
The litigation process may require expert witnesses, focus groups, and trial lawyers to prove bad faith actions. Under the Tiger River Doctrine, insurers who refuse to settle within policy limits may face liability for excess judgments.
Fighting Back Against Insurance Bad Faith
Victims of insurance fraud, bad faith actions, or bad-faith tactics can:
- File complaints with the insurance department or Pennsylvania Insurance Department (if applicable out of state).
- Seek recovery through legal options in South Carolina courts.
- Challenge frivolous lawsuits and defend against unfair claim evaluation techniques.
- Use internal review or escalate to litigation with plaintiff’s lawyers, SC attorneys, or insurance dispute attorneys.
For those injured in Trucking Litigation, personal injury, or personal injury claims after an auto accident, holding the insurance carrier accountable ensures fair insurance coverage.
Why It Matters
Every policyholder in South Carolina deserves honesty from the insurance industry. Whether you are paying insurance premiums on a homeowners insurance policy, a general liability insurance plan, or automobile insurance, insurers are required to act in good faith.
When they don’t, a bad faith insurance claim or bad faith insurance lawsuit is often the only way to enforce fairness. By fighting back, you not only recover damages but also strengthen protections for others in the jury box facing the same battles.
Final Thoughts
The problem of Insurance Bad Faith in South Carolina is more than just a contractual issue,it’s about trust, accountability, and justice. From medical bills after a car accident, to denied life insurance benefits, to unfairly handled workers’ compensation claims, insurers often rely on bad-faith tactics to protect profits.
But with legal options, strong trial lawyers, and awareness of your rights, you can challenge these practices and pursue recovery for breach of contract, punitive damages, and more.
About Ted Law
At Ted Law Firm, we remain committed to holding the insurance industry accountable in South Carolina. Our work is rooted in fairness, ensuring that people facing insurance bad faith and unfair claims process practices know they have strong legal options.We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg . With years of experience navigating insurance law, our team continues to stand up against bad faith actions, from personal injury disputes to insurance bad faith claims across the state..Contact us today for a free consultation
