Typically known as Unfair or Deceptive Trade Practices Act (DTPA), states may enact their own version of consumer protection law that covers individual disability insurance policies.
DTPA protects consumers and the public against false, misleading, and deceptive business practices, unconscionable actions, and breaches of warranty, and gives the consumer an efficient way to secure such protection.
Deceptive Trade Practices Act violations in disability claims are more common than you’d think. By law, generally, companies may not engage in:
- unfair methods of competition in or affecting commerce, and
- unfair or deceptive acts or practices in or affecting commerce.
The literal definition of what qualifies as “deceptive” or “unfair” is a broad legal topic and covers various unlawful acts meant to mislead, injure, deceive or improperly lure the public. Examples include:
- misrepresentation of goods or services
- misrepresentation of the standard or quality
- coercion
- discrimination
- unfair claim settlement practices
- breaches of warranty
- fraud
- overcharging or price fixing
- bad faith dealing
- failure to disclose information about goods or services
What Can You Recover in a DTPA Case?
The real weight behind DTPA statutes is the civil remedy. If you have been wrongly denied insurance benefits through unfair or deceptive trade practices, you can sue the wrongdoer for damages. To prevail on such a claim, you must demonstrate that:
- a deceptive or unfair act or practice, or an unfair method of competition, took place,
- in or affecting commerce,
- causing you or your practice harm
Remedies will vary by state. For instance, if a jury finds in your favor and the company did violate the Act, you may be able to recover economic damages. These include financial losses such as loss of benefits, out of pocket costs, lost time and profits. Plus the next issue can be addressed:
Did the company knowingly violate the Act? If you are able to show the insurance company was aware of the violation at the time it took place, you may also be able to recover punitive damages, court costs, mental anguish damages and attorney fees. Furthermore, if the court finds the insurance company knowingly committed the violation, you may be awarded up to three times the amount of economic and mental anguish damages.
For a free legal consultation, call 800-562-9830
Disability Attorneys for Unfair and Deceptive Trade Practices Cases
As disability insurance lawyers, we protect disabled medical professionals against bad actors in the insurance marketplace. When companies unfairly deny disability benefits, the resulting losses can be catastrophic.
Our law firm’s commitment to inform and support healthcare practitioners throughout the U.S. is widely known. Individuals who have lost disability benefits due to deceptive actions by the insurance provider need experienced representation to be adequately compensated for their damages.
Our attorneys will understand how your case fits under the state Insurance Code and possible Deceptive Trade Practices Act provisions. Not all restrictions may fit the evidence of a case, therefore Deceptive Trade Practices Act violations in disability claims may not be provable. A different cause of action may have more suitable burden of proof.
Please contact us to learn more about this important protection of your disability insurance benefits.
Call or text 800-562-9830 or complete a Free Case Evaluation form
