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Insurance Disputes & Bad Faith

Insurance companies profit by paying less than they owe. Montana law gives you powerful tools to fight back.

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Montana's Insurance Fair Conduct Act

Montana has some of the strongest insurance policyholder protections in the United States. The Montana Insurance Fair Conduct Act (MIFCA) (Mont. Code Ann. §§ 33-18-201 et seq.) creates a private right of action for claimants whose insurers unreasonably deny or delay claims. Under MIFCA, a successful claimant can recover:

$
The amount originally owed on the claim — the benefit that should have been paid from the start
$
Consequential damages — additional losses caused by the wrongful denial or delay
$
Attorney fees and costs — the insurer pays your legal fees when they acted unreasonably
$
Punitive damages — in cases of oppressive, fraudulent, or malicious conduct, courts can award punitive damages to punish and deter

MIFCA is one of the most powerful insurance accountability tools in any state. Most insurance companies know they're exposed to liability far exceeding the original claim value if they misbehave in Montana — which is exactly why having an attorney who knows how to invoke these protections matters.

What Constitutes Insurance Bad Faith in Montana?

Unreasonable Claim Denial
Denying a valid claim without a reasonable basis in policy language or facts
Delay in Processing
Failing to acknowledge or act on claims within reasonable time; stringing the claimant along
Lowball Settlement Offers
Offering amounts far below known damages with the intent to force acceptance through financial pressure
Misrepresenting Policy Terms
Telling policyholders coverage doesn't apply when it clearly does
Biased Investigation
Using hired "independent" medical examiners who predictably minimize injury severity
Failure to Settle Within Limits
Refusing to settle for policy limits when liability is clear, exposing insured to excess judgment

Types of Insurance Disputes We Handle

Personal Injury Protection (PIP) and Medical Payment Denials
Your own insurer is required to pay PIP and MedPay benefits promptly. Delays or denials are often bad faith.
Uninsured / Underinsured Motorist (UM/UIM) Disputes
When the at-fault driver has no or insufficient coverage, your own UM/UIM policy steps in — but your insurer often fights as hard as if they were the adverse party.
Property Damage and Total Loss Disputes
Insurers routinely undervalue vehicles declared total losses. We challenge lowball ACV calculations using market data and comparable vehicle sales.
Independent Medical Exam (IME) Disputes
Insurers use hired physicians to minimize your injuries. We counter IME reports with treating physician testimony and independent specialist opinions.
Coverage Denials and Reservation of Rights Letters
If your insurer sent you a Reservation of Rights letter, they are positioning to deny coverage. You need an attorney immediately.
The Bad Faith Case That Paid $425K

Our client sustained shoulder and cervical injuries in a rear-end collision. The at-fault driver's insurer made an initial offer of $18,000 — on a case with $90,000 in documented medical bills alone. When we sent a formal MIFCA notice of the insurer's unreasonable conduct, they settled for $425,000 within 30 days. Montana's bad faith law works — but you have to know how to use it.

How to Trigger MIFCA Protections

MIFCA has procedural requirements. A claimant must send written notice to the insurer identifying the specific unfair trade practice alleged and providing a reasonable opportunity to cure. The notice must be carefully drafted — a defective notice can forfeit MIFCA's additional remedies even when bad faith is otherwise clear. We draft and send these notices as a routine part of handling disputed claims.

If you believe your insurer is acting in bad faith — denying your claim without explanation, delaying for months, offering you an insultingly low settlement — call us before you accept anything or sign anything. A free evaluation costs you nothing; accepting an inadequate settlement costs you everything.

Insurance Dispute?
Don't accept less than you're owed. Get a free case analysis.
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✓ MIFCA specialists  ·  ✓ Attorney fees may be recoverable  ·  ✓ Punitive damages possible  ·  ✓ No fee unless we win
Signs Your Insurer Is Acting in Bad Faith
Claim denied with vague or no explanation
Months pass with no claim decision
Settlement offer is far below your medical bills
Adjuster demands you complete repeated documentation
You received a Reservation of Rights letter
IME doctor contradicts your treating physician
Related Practice Areas

Insurance Dispute Case Results

$425,000
Bad Faith / Shoulder Injury
Insurer offered $18,000 on a claim with $90,000+ in documented medical bills. We sent a formal MIFCA notice of bad faith. Settlement reached for $425,000 within 30 days of the letter — including attorney fee recovery under the statute.
$310,000
UM/UIM Claim Dispute
Client's own insurer disputed the extent of injuries caused by an uninsured driver, relying entirely on a hired IME opinion. Our retained orthopedic surgeon documented permanent impairment. Arbitration award: $310,000.
$175,000
PIP Denial / Coverage Dispute
Insurer denied PIP benefits claiming injuries were pre-existing. We obtained medical records showing the specific injuries occurred in the collision. After MIFCA notice, insurer paid the full PIP limits plus consequential damages for delayed treatment caused by the denial.

Montana Law Is on Your Side. Use It.

Insurance companies have teams of lawyers protecting their bottom line. You deserve the same protection. Call us before you accept any offer or sign any release.

M
Max — Legal Assistant
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