Insurance Dispute Attorney in Lake Charles — Bad Faith and Coverage Claims

Your Time of Need is Not the Time to be Ignored

You paid your premiums for years. You did everything right. And now that you need the coverage you paid for, the company that took your money every month is treating you like a fraud case.

Insurance companies in Louisiana do not make money by paying claims. They make money by paying the minimum they can justify, delaying the ones they cannot immediately deny, and banking on the fact that most claimants do not know what the law actually requires of them.

I know what La. R.S. 22:1892 says. I know that an insurer who fails to pay an undisputed claim within 30 days without just cause owes 50% of the amount owed in penalties plus attorney fees. I know that La. R.S. 22:1973 allows double damages for bad faith conduct. And I know that the moment an insurer understands that I know these things, the dynamic of your claim changes.

Insurance companies are not afraid of claimants. They are afraid of attorneys who know how to use bad faith statutes.

What I Know About Insurance Disputes in Southwest Louisiana

Southwest Louisiana’s insurance market has been shaped by a decade of major weather events — Hurricanes Laura, Delta, and Ida produced an insurance claims environment in which bad faith conduct became the rule rather than the exception for many carriers. The litigation that followed those storms produced a body of Louisiana case law on insurance bad faith that strengthens the tools available to personal injury claimants in coverage disputes today.

In the personal injury context, the insurance disputes I handle fall into three categories. First, UM/UIM disputes — cases where the at-fault driver had no insurance or insufficient insurance, and the client’s own insurer is refusing to pay what the UM policy requires. Second, direct bad faith claims — cases where the at-fault driver’s insurer is delaying, low-balling, or wrongfully denying a claim in violation of La. R.S. 22:1892 or 22:1973. Third, coverage disputes — cases where the insurer is arguing that a policy exclusion or coverage limitation bars the claim entirely.

The bad faith penalty exposure — 50% of the damages owed plus attorney fees under La. R.S. 22:1892, or double damages under La. R.S. 22:1973 — changes the economics of insurance litigation significantly. A carrier that might otherwise litigate a $100,000 claim has a very different calculation when the exposure is $200,000 plus attorney fees if bad faith is proven.

If you haven’t already spoken to an attorney, you’re already behind. Contact Colonna Law Firm now.

What Is Insurance Bad Faith Under Louisiana Law?

Louisiana has specific statutes that govern how insurance companies must handle claims. Louisiana Revised Statute 22:1973 and 22:1892 impose duties on insurers and provide penalties when those duties are violated:

• La. R.S. 22:1892 requires insurance companies to pay undisputed claims within 30 days of receiving satisfactory proof of loss. If an insurer fails to pay within this timeframe without just cause, the insurer may be liable for a penalty of 50% of the amount owed, plus reasonable attorney fees
• La. R.S. 22:1973 imposes a broader duty of good faith and fair dealing on insurers. An insurer that breaches this duty may be liable for actual damages plus penalties up to twice the damages or $5,000, whichever is greater

These penalties are designed to deter insurance companies from using delay and denial tactics to pressure claimants into accepting inadequate settlements. When an insurer’s bad faith conduct adds to the harm already caused by an accident, Jacob Colonna pursues both the underlying personal injury damages and the statutory penalties available under Louisiana law.

What Are Common Insurance Dispute Tactics in Louisiana?

Insurance companies use a range of tactics to minimize or avoid paying claims. Understanding these tactics helps injured people recognize when they are being treated unfairly:

• Lowball settlement offers — offering a fraction of the claim’s actual value immediately after the accident, before the full scope of injuries is known, and pressuring the claimant to accept quickly
• Requesting unnecessary or burdensome documentation — asking for records and information that serve no legitimate purpose, to delay claim resolution
• Disputing liability when fault is clear — arguing that the insured driver was not at fault even when the evidence overwhelmingly shows otherwise
• Challenging medical treatment as unnecessary — sending claims to in-house medical reviewers who regularly find treatment ‘medically unnecessary’ regardless of the treating physician’s recommendation
• Claiming pre-existing conditions — arguing that the injured person’s conditions or pain predated the accident and that the insurer is not responsible
• Surveillance of claimants — hiring investigators to photograph or video claimants to find any basis to argue that injuries are less severe than reported

When Should You Reject an Insurance Settlement Offer?

Signing an insurance settlement and release agreement ends your claim permanently. You cannot reopen the claim if your condition worsens, if you discover additional injuries, or if future treatment costs more than anticipated. Accepting a settlement before you understand the full scope of your injuries is one of the most common mistakes personal injury claimants make.

You should consult an attorney before accepting any settlement offer if:

• You are still receiving medical treatment or your condition has not stabilized
• You do not yet know the full cost of your future medical care
• The offer does not cover all of your economic losses — medical bills, lost wages, and property damage
• The offer provides nothing for pain and suffering or other non-economic damages
• You feel pressured to sign quickly

What Is Uninsured and Underinsured Motorist (UM/UIM) Coverage in Louisiana?

Louisiana requires insurance companies to offer uninsured motorist (UM) coverage, which protects you when the at-fault driver has no insurance or insufficient insurance to cover your losses. Drivers may waive UM coverage in writing, but if you did not waive it, you likely have UM coverage available.

When the at-fault driver’s liability policy is insufficient to cover your full damages, your own UM/UIM coverage can make up the difference, up to your policy limits. Insurance companies often dispute UM/UIM claims as aggressively as they dispute third-party claims — sometimes more so. Jacob Colonna handles UM/UIM coverage disputes and enforces these policies against insurers who improperly deny or undervalue these claims.

What Damages Can You Recover in an Insurance Bad Faith Claim?

• The full value of the underlying personal injury claim — medical expenses, lost wages, pain and suffering, and all other personal injury damages
• Statutory penalties under La. R.S. 22:1892 — 50% of the amount owed if the insurer failed to pay without just cause within the required timeframe
• Damages and penalties under La. R.S. 22:1973 — up to twice the damages or $5,000, whichever is greater, for breach of the duty of good faith and fair dealing
• Reasonable attorney fees — awarded against the insurer in proven bad faith cases

Frequently Asked Questions