A Montana jury hit Fireman’s Fund Insurance Company with a $5.3 million bad faith insurance verdict after the company refused to pay the claim of a woman who suffered severe braid injuries in an auto accident that wasn’t her fault. It is the largest bad faith insurance verdict in Montana’s history.

The case

A Montana woman was in a head-on collision in 2003 which left her with permanent brain injuries. The accident, although not her fault, was only the beginning of her troubles. She had insurance with Fireman’s Fund Insurance Company. The company not only refused to pay her medical bills which delayed her from getting the treatment she needed, but her medical accounts were then turned over to collection agencies. She sued Fireman’s Fund for breach of contract and bad faith.

The verdict

The Montana jury overwhelmingly sided with the injured woman and awarded her $5.3 million – the largest verdict in Montana to date. The damages consisted of $1.8 million for medical bills, loss of past and future earnings, pain and suffering, mental and emotional injury and more. In addition, the jury found that Fireman’s Fund acted in bad faith and awarded her $3.5 million in punitive damages to punish the insurer for its actions.

What is bad faith?

Insurance policies are a contract; you pay premiums and insurance companies pay benefits when an accident occurs. Insurance companies act in bad faith when they don’t pay a policyholder’s valid benefits, don’t pay those benefits in a reasonable amount of time or don’t treat a policyholder fairly or act in good faith. Consumers can sue insurance companies when this happens and may be entitled to not only getting their claims paid, but also for damages that they may have incurred. While litigation is something that many people avoid, it’s important to know that it is a valid option to consider.

If your insurance company has acted in bad faith, contact an attorney whose practice focuses in this area of law for a free consultation. There is no obligation and consultations are strictly confidential. To contact a qualified attorney, please click here. We may be able to help.