Can I sue for bad faith if the insurance company employee told me that I could cash a check even though I questioned the reason I received it?

UPDATED: Oct 2, 2022

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Can I sue for bad faith if the insurance company employee told me that I could cash a check even though I questioned the reason I received it?

I am receiving workman’s compensation WC for a work injury that I had surgery on. I was told I had to complete paperwork for Unicare even though I was receiving WC. I was sent a check by Unicare and it did not seem right so I called to question it. The representative asked me why I was questioning the check and I

told her I was already receiving WC. She told me that she would contact me back and not to cash the check. I had to call her back almost 2 weeks later and when I did she said that I could cash the check. Now they are telling me that I owe them the money back.

Asked on October 30, 2019 under Insurance Law, Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, that is not bad faith; it may have been a mistake, but that falls short of the deliberate efforts to deny you the benefits of a contract (or insurance policy) which is the hallmark of a bad faith claim. And you have not suffered a legally recognizable injury: you are being asked to return money you were given in error, but are not losing or payong any of your own money.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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