Can You Sue An Insurance Company For Bad Faith In Rhode Island?

You filed a claim. You paid your premiums faithfully. And now your insurance company is dragging its feet, lowballing your offer, or flat-out denying what you’re owed. Sound familiar? If so, you might be dealing with something that has a name in the legal world: insurance bad faith. And in Rhode Island, you may have more options than you think.

What Exactly Is Insurance Bad Faith?

Insurance companies have a legal duty to handle claims honestly and fairly. When they don’t, and instead act in a way that’s unreasonable or dishonest, that’s bad faith. It goes beyond a simple disagreement over how much your claim is worth. Bad faith is about the insurer’s conduct, not just the outcome. Think of it this way: an insurance company that investigates your claim carefully and then offers less than you hoped isn’t necessarily acting in bad faith. But one that ignores your claim, misrepresents your policy, or invents reasons to deny you? That’s a different story.

What Does Rhode Island Law Say?

Rhode Island actually has a specific statute addressing this. Under R.I. Gen. Laws § 9-1-33, an insured person can bring a legal action against their insurer when the company wrongfully and in bad faith refused to pay or settle a claim, or failed to timely perform its obligations under the policy. What makes this law particularly meaningful is what you can recover. If successful, a claimant may pursue:

• Compensatory damages to cover your actual losses
• Punitive damages, which are meant to punish especially egregious conduct
• Reasonable attorney fees

That last point matters. In many legal disputes, you pay your own attorney, win or lose. Bad faith cases in Rhode Island open the door to recovering those costs from the insurer.

What Counts as Bad Faith Behavior?

Not every frustrating insurance experience rises to the level of bad faith. Insurers investigate, negotiate, and sometimes disagree with claimants, and that’s all part of the process. But certain patterns of behavior can signal something more problematic, such as unexplained delays in processing a claim, denying a claim without any reasonable basis, failing to investigate the claim properly, misrepresenting what your policy actually covers, or offering a settlement so far below the actual value of the claim that it defies reason. Rhode Island also has the Unfair Claims Settlement Practices Act, which sets standards for how insurers must handle claims and defines practices that are considered unfair. These statutes work together to create a framework that protects policyholders.

Talk to an Attorney to Find Out If You Have a Case

Insurance companies have teams of lawyers working to protect their bottom line. If you believe your insurer hasn’t played fair, it’s worth exploring your options. At Robert E. Craven & Associates, we handle Rhode Island personal injury matters and understand how insurance companies operate, and how to hold them accountable when they don’t. If you think you’ve been the victim of insurance bad faith, we encourage you to reach out. Contact us today for a free consultation. We’re here to help you understand your rights and figure out the best path forward.

Source:

webserver.rilin.state.ri.us/Statutes/title9/9-1/9-1-33.htm