Bad Faith to Insurance Company

When it comes to insurance contract, the both parties (insured/insurer) need to keep up to the agreement. So it can be appalling that you, the insured keep to bargain of paying your premium but the insurer renege on their agreement.

The fact is that insurance company should always execute legal duties to the insured especially when it comes to claims. But some insurers try to play hanky panky by outrightly denying this claims or trying to underpay the insured.

Also Read: How to Write a Letter to Health Insurance Company for Reimbursement

All these habits are bad faith practices and its affect the insured greatly. So when you are confronted this issue with your insurance company, you would need to set the record straight with them. You don’t need  to alert them to these wholesome behaviors with a law suit, you can start by writing to them to show your displeasure. This is where a letter of bad faith to insurance company comes in.

So letter of bad faith to insurance company is a demand letter that is written by an insured to an insurer (insurance company) to show un–approval for their execution of duties. This letter is written so that a lot of issues might be corrected by the insurer. The letter can be written by the insured or the attorney of the insured. It can be used to correct the anomaly that might have being done by the insurance company under any type of insurance contracts

If the compensation that was given to you by your insurance company isn’t worth the right value, then it is right to summarize your claim and notify them. So if you know that your insurer as been acting in bad faith then you would need to let them know.

Writing a letter of bad faith to insurance company will need you, writing in a very clear and effective manner. You would need to be persuasive about it, as you would need the letter to help you initiate the settlement process. You need the letter to force the insurer to take your dispute seriously, so you have to be professional with the letter. So how can you write your letter officially to help make the insurance company move into action?

  1. Make your letter as formal as possible: This is a formal letter, so use only official tone and use formal format in your letter.
  2. Highlight only the facts in your letter, state the laws involved and evidence to show you are were not correctly compensated
  3. State the part that the insurance company is liable; you should accompany this with the list of your damages and injuries
  4. State all your out of pocket amount that you are expended on bills
  5. Show evidence like supporting documents like home damage estimates, medical bill document etc. This will show exact amount you need
  6. Then state the original amount of funds you were expected to be compensated with.
  7. Then send the letter via certified mail to avoid the claims by the insurer of not receiving it.

Below are the sample letters of bad faith to insurance company

Sample 1

Paulo Casualty Company

567 Robbins Road

Lacon, GA 5678-3432

Re: our client: Regina PETERS

Your insured’s: Dave Steve

Policy no: 6578-87

Claim no: 5678986

Date of loss: Nov 23, 2021

Dear James,

We are the Attorney for Regina peters for an accident that involved your insured drive, Dave Steve. The accident happened on the Nov 23rd, 2021. This letter is coming your way for demand reasons which are only for compromise and settlement. With this letter is a copy of the accident report for your perusal.

Our client Regina, is a 56 years old lady and resident in California. Had an accident that she suffered severe damages and injuries from the accident. She incurred over $12,000 in medical bills. From the investigating officer report, it has been found out that your insured, Dave was at fault.

Our client, Regina Peters have been suffering for about 10 months now because of the damages and injuries from this accident. She has been suffering both the pains and the financial costs alone. Attached to this letter is the medical records ad the bill therein. Based on the nature of the injuries sustained by my clients, the damages and other statutory claims, my client is demanding the policy limits of about $15,000

We would be awaiting your response in the next 30 days of receiving this letter. But failure to comply with this letter will give rise to a liability. We wouldn’t hesitate to institute a lawsuit against your client. Please treat as urgent as possible

Yours sincerely

Pearl  M.A.  (Esq.

Sample 2

Barry Brown

5678 Kingsway Street,

Hilltops County, Atlanta

Brightstar insurance company

6754 Tintop Street, Atlanta

Re: #5678, 2nd Oct 2009

Dear Paul,

This is a letter to explain more on the conversation we had yesterday concerning my claims.  It is in reference to the uninsured motorist claim concerning the insurance no above. You made only a settlement of $500. The amount is just appalling, because it has no bearing with the damages and injuries I incurred in the incident.

My recent medical bill alone is about $1800, not to talk of the other money I have been expending since I had the accident. You are till yet to furnish me with the right position of things or the right compensation

So at this point, I am left to conclude that Brightstar insurance company is refusing to negotiate in good faith. As it is, if no reasonable and sincere settlement is forth coming, then I will be left with nothing but to initiate a suit. I wouldn’t mind suing Brightstar for your apparent bad faith. Will be waiting your response in 21 days

Yours sincerely,

Barry Brown


When any insurance company fails to settle an insured in good faith, then they have left the insured in bad faith. As an insured, you can make your grudges show by writing to them to ask for the right compensation. The above guidelines have been outlined for you to follow and get your letter right. The samples are been drafted also, you can use any as your format to draft your letter of bad faith to perfection.


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