When a loved one passes away, a life insurance policy should provide financial protection and peace of mind. Unfortunately, some insurance companies deny valid claims—or delay payment—leaving grieving families struggling to recover. In Florida, when an insurer acts unfairly or dishonestly, you may have the right to sue for bad faith.
This blog explains what “bad faith” means under Florida law, how to recognize it, and what steps you can take if your life insurance claim was wrongfully denied.
What Is Bad Faith Under Florida Law?
Under Florida Statute §624.155, an insurance company acts in bad faith when it fails to settle or pay a claim in good faith, even though it could and should have done so under the circumstances. In simpler terms, the law requires insurers to handle claims fairly, honestly, and promptly—not to look for ways to avoid paying.
Bad faith can occur in both first-party claims (filed by the insured or beneficiary) and third-party claims (filed by someone harmed by the insured). Life insurance denials fall into the first-party category.
Examples of Bad Faith in Life Insurance Denials
While not every claim denial qualifies as bad faith, certain tactics are strong warning signs, such as:
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Unreasonable claim delays or failure to investigate within a reasonable time
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Misrepresentation of policy terms or exclusions
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Failure to communicate with beneficiaries or request additional documents in good faith
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Denial without legitimate justification or based on vague or false reasons
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Using technicalities or outdated information to avoid payment
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Lowball settlement offers far below the policy’s face value
If you believe the insurance company handled your claim in one of these ways, it may be time to explore a bad faith lawsuit.
How to File a Bad Faith Claim in Florida
Before filing a bad faith lawsuit, Florida law requires a specific Civil Remedy Notice (CRN) to be filed with the Florida Department of Financial Services (DFS). The notice gives the insurance company 60 days to “cure” its violation by paying the claim or fixing the issue.
If the insurer fails to cure within that window and the insured prevails in the underlying breach of contract case, the beneficiary may then proceed with a bad faith lawsuit in court. Successful plaintiffs may be entitled to:
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Full policy benefits owed under the life insurance policy
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Interest on delayed payments
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Attorney’s fees and court costs
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Consequential damages caused by the insurer’s misconduct
In extreme cases, courts may also award punitive damages to punish particularly reckless or malicious behavior.
Why Bad Faith Claims Matter
Bad faith lawsuits serve two important purposes:
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Protecting consumers from abusive or deceptive insurance practices.
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Holding insurers accountable for putting profits over policyholders’ rights.
Florida courts take insurance bad faith seriously—especially when beneficiaries are left financially vulnerable after a loss.
What to Do If Your Life Insurance Claim Was Denied
If your claim was denied, take the following steps:
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Request a written explanation for the denial.
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Gather all correspondence and policy documents.
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Consult an experienced life insurance attorney to review the denial.
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Do not accept a denial as final—many “denied” claims can be reversed or settled favorably with proper legal action.
Talk to a Florida Life Insurance Attorney
If you suspect your life insurance claim was denied in bad faith, you don’t have to face the insurance company alone. An experienced Florida life insurance claims attorney can investigate the denial, file a Civil Remedy Notice, and pursue full compensation through negotiation or litigation.
Need help with a denied life insurance claim?
Contact our firm today for a free consultation. We help Florida families recover the benefits they’re owed and hold insurers accountable for bad faith conduct.
Have you or someone you know been denied a life insurance claim? Contact Florida Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at jp@yourattorneys.com or by text at (305) 929-8935.
