USA Herald — On the evening of July 4th, 2021, Florida resident Maria Hernandez was driving home from a family barbecue when she was involved in a severe automobile accident. Ms. Hernandez, a policyholder with Progressive Insurance Company f
The other driver, who was later identified as Carter Clinton, admitted fault for the accident and was cited by the police for reckless driving. Ms. Hernandez, who was shaken but thankfully not seriously injured, immediately contacted her insurance company to file a claim for damages to her vehicle.
However, Ms. Hernandez was in for a surprise when her claim was denied by her insurer. The company cited a provision in her policy that excluded coverage for damages caused by “intentional acts,” arguing that Mr. Clinton’s reckless driving constituted an intentional act.
Ms. Hernandez, who had always paid her premiums on time and had never filed a claim before, was stunned by the denial. She contacted a personal injury attorney, who advised her to file a lawsuit against the insurer for bad faith.
According to Florida law, insurance companies are required to act in good faith when handling policyholder claims. This means that they must thoroughly investigate the circumstances of a claim, communicate transparently with the policyholder, and make a fair determination on whether to pay the claim. If an insurance company fails to do so, it can be sued for bad faith.
Ms. Hernandez’s attorney argued that Progressive acted in bad faith by denying her claim without a thorough investigation and by using a questionable interpretation of the policy’s exclusion clause. In addition, the attorney pointed out that Mr. Clinton’s reckless driving was not necessarily an intentional act, as it could have been the result of distracted or impaired driving.
After several months of legal proceedings, a Florida court ruled in favor of Ms. Hernandez, stating that Progressive Insurance had indeed acted in bad faith by denying her claim without adequate justification. The court ordered the company to pay Ms. Hernandez the full amount of her damages, as well as legal fees and additional damages for the bad faith.
The ruling was seen as a victory for policyholders and a warning to insurance companies to carefully and fairly handle claims. Ms. Hernandez, who was relieved and grateful for the outcome, said in a statement, “I just wanted to be treated fairly and with respect, and I’m glad that the court recognized that my insurance company failed to do so. I hope this ruling sends a message to other companies to do right by their policyholders.”
The case has also drawn attention to the issue of bad faith insurance practices, with some calling for stricter regulations to protect policyholders from such actions. It remains to be seen what changes, if any, will be made as a result of this case, but for now, Ms. Hernandez can rest assured that justice has been served.
