You paid your premiums on time. You followed the rules. Now, after an accident leaves you injured and overwhelmed with bills, the insurance company is refusing to pay what your claim is worth. Whether you are fighting your own insurer or seeking compensation from another driver’s policy, a Chicago insurance dispute lawyer at Abels & Annes, P.C. will hold the insurance company accountable.
Insurance companies use predictable tactics to minimize payouts: lowball settlement offers, endless requests for documentation, claim denials based on technicalities, and delays designed to pressure you into accepting less. When these tactics cross the line into bad faith, Illinois’ insurance code allows courts to award penalties plus attorney fees.
Insurance companies count on claimants giving up before discovering their rights. At Abels & Annes, P.C., we fight for Chicago-area residents dealing with denied claims, unreasonable delays, and settlement offers that fall far short of what injuries actually cost. Free consultations are available 24/7.
Table of contents
- Key Takeaways for Chicago Insurance Dispute Cases
- What Makes Abels & Annes the Right Choice for Your Insurance Dispute?
- What Is Bad Faith Insurance Under Illinois Law?
- How Do Insurance Companies Use the "Delay, Deny, Defend" Playbook?
- What Is the Difference Between First-Party and Third-Party Claims?
- Why Are Independent Medical Exams Dangerous to Your Claim?
- What Is an Examination Under Oath and Why Do You Need a Lawyer Present?
- Why Hire a Lawyer Instead of a Public Adjuster?
- What Is Policy Rescission and How Do Insurers Misuse It?
- What Should You Do After Your Insurance Claim Is Denied?
- Frequently Asked Questions About Insurance Disputes in Chicago
- Take Control of Your Insurance Dispute Today
Key Takeaways for Chicago Insurance Dispute Cases
- Illinois Section 155 allows courts to award penalties up to $60,000, plus attorney fees, when insurers act unreasonably.
- Insurance companies use a predictable "Delay, Deny, Defend" playbook to exhaust claimants into accepting less.
- First-party claims (your own insurer) and third-party claims (another driver's insurer) require different strategies.
- Independent Medical Exams and Examinations Under Oath are tools insurers use to undermine claims
- The Chicago insurance dispute attorneys at Abels & Annes, P.C. have recovered millions for clients and take cases to trial in Cook County Circuit Court or the Northern District of Illinois when necessary
What Makes Abels & Annes the Right Choice for Your Insurance Dispute?
Fighting insurance companies requires resources, experience, and determination. Our attorneys have spent years handling complex insurance disputes for Chicago-area residents.
Proven results in high-stakes cases
We have secured substantial recoveries, including a $6,000,000 settlement for a family whose loved one was killed in a bicycle accident and a $4,500,000 premises liability settlement for a woman who suffered fractures when a commercial fence collapsed.
Recognized by peers and industry organizations
Our accolades include placement on the Top 100 Lawyer List published by Super Lawyers (Thomson Reuters), a 10.0 Superb rating from AVVO, and membership in both the Million Dollar Advocates Forum and Multi-Million Dollar Advocates Forum.
Trial-ready in Cook County and federal court
We prepare every case for trial, whether in Cook County Circuit Court or the U.S. District Court for the Northern District of Illinois. Our willingness to take cases to court pressures insurers to offer fair settlements.
We handle cases on a contingency fee basis with no upfront costs. Free consultations are available 24/7.
What Is Bad Faith Insurance Under Illinois Law?
Bad faith insurance refers to an insurer's unreasonable refusal to pay a valid claim, unjustified delays, or deceptive practices designed to minimize payouts. Section 155 of the Illinois Insurance Code (215 ILCS 5/155) provides a remedy.
To recover under Section 155, a policyholder must demonstrate that the insurer disputed liability, delayed settlement, or refused coverage, and that the conduct was “vexatious and unreasonable.” Courts examine how the insurer communicated, whether investigations were thorough, and whether settlement offers reflected actual claim value.
When courts find bad faith, policyholders recover more than the original claim. Section 155 authorizes three penalty calculations:
- 60% of the amount the court determines the policyholder is entitled to recover
- A flat $60,000
- The difference between what the insurer offered before litigation and what the court awards
The statute also mandates payment of all reasonable attorney fees. This shifts the financial burden to the insurer and makes it feasible for injured policyholders to pursue justice.
How Do Insurance Companies Use the "Delay, Deny, Defend" Playbook?
Insurance industry insiders have identified a systematic approach that insurers use to avoid paying claims. These tactics transform the claims process into an obstacle course designed to exhaust policyholders.
Delay tactics wear you down
The delay phase involves dragging out claims through repeated documentation requests, transferring files between adjusters, and failing to return calls. Each delay increases financial pressure on injured policyholders struggling with bills.
Denials often lack a legitimate basis
When delays fail, insurers issue denials citing policy exclusions, missed deadlines, or alleged application misrepresentations. Many denials rely on technicalities unrelated to whether the loss actually occurred.
Aggressive defense deters litigation
Finally, insurers mount aggressive defenses, overwhelming claimants with motions and discovery requests intended to make pursuing the claim more trouble than it is worth.
A Chicago insurance dispute lawyer levels the playing field. We match insurer tactics and have the trial experience to take cases before Cook County juries.
What Is the Difference Between First-Party and Third-Party Claims?
A first-party claim arises when you seek benefits under your own policy, such as homeowner's coverage after storm damage or uninsured motorist coverage after a hit-and-run. Section 155 applies directly to these disputes.
A third-party claim occurs when you seek compensation from someone else's insurer, most commonly after a car accident. Because you have no contract with that company, working with an experienced car accident lawyer can help protect your rights and ensure the insurer treats your claim fairly.
Whether your dispute involves your own insurer or someone else's, a Chicago insurance claim denial lawyer identifies the appropriate strategy for your circumstances.
Why Are Independent Medical Exams Dangerous to Your Claim?
Insurance companies frequently require claimants to undergo an Independent Medical Examination (IME). Despite the name, these examinations are not independent. The doctors are hired, scheduled, and paid by the insurance company.
IME physicians issue reports that overwhelmingly favor insurers. Common findings include conclusions that injuries were pre-existing, treatment was excessive, or the claimant needs no further care.
Warning signs that an IME is designed to undermine your claim include:
- Examinations lasting only a few minutes despite complex injuries
- Leading questions focused on activities you can perform rather than your limitations
- A physician specializing in a field unrelated to your primary injuries
- The exam takes place in a bare office far from any actual medical facility
An insurance dispute attorney prepares clients for IMEs, reviews reports for inaccuracies, and challenges biased findings with testimony from treating physicians.
What Is an Examination Under Oath and Why Do You Need a Lawyer Present?
An Examination Under Oath (EUO) is formal questioning by the insurance company's attorney under penalty of perjury. Unlike depositions, EUOs occur without a judge present to rule on improper questions.
Insurance companies demand EUOs to create a record supporting claim denial. Questioning often extends for hours, searching for inconsistencies that can be characterized as misrepresentations. Common EUO traps include:
- Questions about unrelated prior claims designed to suggest a pattern of fraud
- Requests for documentation that the policy does not actually require
- Mischaracterizations of earlier statements that you unwittingly confirm
- Leading questions suggesting you violated policy conditions
A single misstatement, even an honest mistake about dates or amounts, gives insurers grounds to deny claims based on alleged non-cooperation. Having a Chicago insurance dispute lawyer present protects against these tactics.
Why Hire a Lawyer Instead of a Public Adjuster?
Public adjusters help document losses and negotiate with insurers. They excel at calculating replacement costs for straightforward claims. However, their limitations become clear when insurers refuse to act in good faith.
Public adjusters lack enforcement power
Public adjusters possess no power to compel insurance companies to act. They have no subpoena authority, no ability to take depositions, and no standing to file lawsuits. When an insurer stonewalls, the public adjuster has no recourse.
Only attorneys recover Section 155 penalties
Most significantly, only attorneys recover Section 155 penalties and fees. Public adjusters cannot pursue these remedies, meaning policyholders who use only a public adjuster forfeit potentially substantial recoveries.
A Chicago bad faith insurance lawyer pursues all available remedies, including penalties and fee-shifting that make the insurer pay for forcing you to litigate.
What Is Policy Rescission and How Do Insurers Misuse It?
Rescission is when an insurance company cancels your policy and acts like it never existed. Insurers use this tactic by claiming you lied or left out important information on your original application.
Under Section 154 of the Illinois Insurance Code, they must prove two things: that what you said was false, and that you either meant to deceive them or that the information would have changed their decision to insure you.
But not every mistake on an application justifies rescission. Illinois courts ask a simple question: Would the insurance company have refused to cover you if it knew the truth? If the answer is no, the insurer has no right to cancel your policy over a minor error.
Some insurers play an unfair game. They happily collect your premiums for years without checking your application. Then, the moment you file a claim, they dig through your paperwork looking for any small mistake they can use to cancel your coverage. This shady practice shows the insurer cares more about avoiding payment than honest underwriting.
An attorney challenges improper rescission by showing that the mistake on your application would not have changed the insurer's decision, or that the insurer waited too long to raise the issue.
What Should You Do After Your Insurance Claim Is Denied?
Your first priority is engaging legal counsel. An insurance dispute lawyer reviews the denial, identifies weaknesses in the insurer's position, and develops a strategy.
Additional protective steps include:
- Requesting the complete claim file with all adjuster notes and internal communications
- Documenting all interactions with the insurance company
- Preserving medical records, repair estimates, and supporting evidence
- Avoiding signing releases or settlement documents without legal review
- Continuing medical treatment as recommended
Contact a Chicago insurance dispute attorney at Abels & Annes, P.C. if you’re involved in an insurance dispute or immediately after receiving a denial. Free consultations are available 24/7.
Frequently Asked Questions About Insurance Disputes in Chicago
How long do I have to file a bad faith lawsuit?
Deadlines vary depending on your claim, but waiting is never a good idea. Evidence gets lost, witnesses forget what they saw, and insurance companies use every delay to their advantage. The sooner you talk to a lawyer, the stronger your case.
How much does it cost to hire an insurance dispute lawyer?
Nothing upfront. We work on a contingency fee basis, meaning you pay no attorney's fees unless we win your case. Our fee comes as a percentage of the settlement or verdict we obtain for you, not out of your pocket.
If the insurance company is found liable for bad faith under Section 155, the court orders them to pay your attorney fees on top of everything else.
Do I have to go to court, or can this be settled without a lawsuit?
Most insurance disputes settle without going to court. Negotiation, mediation, and demand letters resolve the majority of cases. Most of the time, insurance companies settle for fair amounts when they know you are ready and willing to sue. Hiring a lawyer who has tried cases in Cook County Circuit Court sends a message that you are not backing down. That pressure often leads to better settlement offers.
What if the insurance company says the accident was partly my fault?
Insurance adjusters routinely try to shift blame onto injured people. It is one of their favorite ways to reduce their payouts. They do this by exploiting Illinois’ modified comparative negligence rule, which reduces your total compensation by the percentage of any fault you share for an accident. Understanding how liability insurance cover if you’re not at fault works can help you recognize when an insurer is unfairly trying to reduce your claim and how to avoid insurance increase after an accident.
For instance, if you were partly at fault, you can still recover money in Illinois as long as you were not more than 50% responsible. If you were 20% at fault, you lose 20% of your compensation. Do not let an adjuster convince you that being partly to blame means you get nothing. Working with an experienced insurance dispute lawyer levels the playing field and gives your case the leverage it needs to challenge insurance companies.
What if my insurance company claims I lied on my application to cancel my policy?
This is a scare tactic insurers use to avoid paying claims. They dig through your original application, looking for any mistake, then claim you "lied" to void your coverage entirely. But Illinois law does not let them off the hook that easily.
The insurer must prove the mistake actually mattered, meaning it would have changed their decision to insure you in the first place. Forgetting to mention a fender bender from five years ago probably would not have affected anything. An attorney can fight back against these false rescission attempts.
Take Control of Your Insurance Dispute Today
Insurance companies have teams of adjusters and attorneys focused on paying you as little as possible. You deserve someone fighting just as hard on your side.
At Abels & Annes, P.C., we take on insurers who deny valid claims, drag out settlements, and make insurance companies lowball offers to injured victims. Whether your case involves bad faith conduct or simply an insurance company that refuses to pay fairly, we fight for the best possible outcome.
Call us to speak directly with a licensed attorney about your case or contact us online. Consultations are free, available 24/7, and come with no obligation. We never charge a fee unless we recover compensation for you. If you are not sure where to turn, let us get to work for you today.