Increasingly, however, insurance companies take the approach that they are profit machines for their stockholders and insiders. Claims adjusters are taught to be difficult to reach, uncooperative when finally tracked down and evasive in their responses.
Claim payment is to be avoided whenever possible.
The recent decision of the Hawaii Supreme Court in The Best Place, Inc. v. When an insurer wrongfully denies benefits, the insurer may held liable for consequential damages, emotional distress damages, punative damages, attorneys fees and more. Although this decision found only that the insurer is liable for bad faith conduct toward a person who paid it for insurance coverage, the reasoning followed by the court indicates that the Hawaii courts may also recognize insurer responsibility for bad faith conduct in other situations in the future. For contract claims the applicable statute of limitations is usually 6 years from the breach of contract. For personal injury claims generally a 2 year deadline applies from the date of the wrongful conduct until the claims must be filed in court.