Over 180 South Carolina state employees may share in a $7.8 million verdict against two insurance companies accused of bad faith insurance practices after the companies cheated them out of payments by changing their definition of “actual charges.”

Denial of payments

According to news reports, two insurance companies – Dixie National Life Insurance and Patients National Foundation Life Insurance – allegedly denied payments to over 180 South Carolina state employees related to their cancer treatments. After a lengthy trial, a federal judge awarded employees in the class action lawsuit $7.8 million. The award constitutes changes made by the insurance companies regarding the definition of ‘actual charges’ in which their policies were different from stop-gap supplemental policies which generally pay the difference between amounts billed by providers and amounts reimbursed by primary insurance companies. However, the insurers refused to pay those claims – the denial of which may have constituted bad faith insurance practices. The insurance companies have appealed the decision.

Bad faith insurance damages

When insurance companies refuse to pay policyholders’ valid claims, they may be acting in bad faith. If this happens, insurance companies can be held accountable for their actions and you may be entitled to money damages. Here are some examples of recent bad faith insurance verdicts and/or settlements:

• $16.2M. A Missouri couple was awarded $16.3 million after the Allstate Insurance Company refused to pay their valid claim and they sued the insurer for bad faith insurance practices. The couple was in a serious car accident and it was found that Allstate acted in reckless disregard in relation to their claim.
• $8.2M. A Florida man was awarded $8.2 million after the Allstate Insurance Company refused to pay his valid claim and he sued the insurer for bad faith insurance practices. The man was hit by a car while raking leaves and suffered a broken neck, herniated disks and brain hemorrhages.
• $4.2M. A Texas restaurant was awarded $4.2 million after the Evanston Insurance Company refused to pay its valid slip and fall claim and it sued the insurer for bad faith insurance practices.

If your insurance company has denied or delayed your valid insurance claim, contact an experienced bad faith insurance attorney to discuss your situation and evaluate your options. Consultations are free, without obligation and are strictly confidential.