I was denied insurance coverage on a vehicle collison. I received a letter from Company A Insurance group as "Claims representative" of Comp...

Question

I was denied insurance coverage on a vehicle collison. I received a letter from Company A Insurance group as "Claims representative" of Company B Insurance company denying coverage. I want to issue a demand letter and possibly file a petition under insurance bad faith. My question is do I issue the demand letter to Company A or B insurance company and which company would I file suit against if they do not respond to my demand letter? Should I include the lienholder of the rental vehicle as a possible plaintiff along with myself?

Answer

I am assuming that Company A is an independent contractor adjusting group hired by Company B to adjust their claims. They are a disclosed agent of Company B And probably only passed on Company B's determination of "no coverage" as the Ins Co would prob have made the "no coverage" decision. If no coverage exists, there is no bad faith in denying the claim based on a no coverage determination. Don't forget if there is no insurance coverage then there cannot be any bad faith pay the claim. You must first determine there is a breach of contract before there can be a determination of the underlying implied fiducIary obligation of good faith and fair dealing. No breach of contract, no bad faith.